The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:

Jan. 20	Purchased	450	units	@	$	9	=	$	4,050
Apr. 21	Purchased	250	units	@	$	11	=		2,750
July 25	Purchased	330	units	@	$	14	=		4,620
Sept. 19	Purchased	140	units	@	$	16	=		2,240

During the year, The Shirt Shop sold 960 T-shirts for $25 each.

Required a. Compute 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. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.)

b. Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted average. Use a separate set of journal entries and T-accounts for each method. Assume all transactions are cash transactions.

c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.