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

January 20	Purchased	460	units	@	$6	=	$2,760
April 21	Purchased	120	units	@	$7	=	840
July 25	Purchased	220	units	@	$9	=	1,980
September 19	Purchased	90	units	@	$10	=	900

During the year, The Shirt Shop sold 720 T-shirts for $15 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