The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20Purchased390units@$3=$1,170 Apr. 21Purchased110units@$4= 440 July 25Purchased230units@$6= 1,380 Sept. 19Purchased90units@$8= 720 During the year, The Shirt Shop sold 620 T-shirts for $13 each.RequiredCompute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.