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

January 20	Purchased	330	units	@	$12	=	$3,960
April 21	Purchased	140	units	@	$13	=	1,820
July 25	Purchased	250	units	@	$14	=	3,500
September 19	Purchased	90	units	@	$16	=	1,440

During the year, The Shirt Shop sold 630 T-shirts for $21 each.

Required

1. 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.
2. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.

Complete this question by entering your answers in the tabs below. 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. Note: Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions