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

Jan. 20	Purchased	400	units	@	$	8	=	$	3,200
Apr. 21	Purchased	150	units	@	$	10	=		1,500
July 25	Purchased	200	units	@	$	12	=		2,400
Sept. 19	Purchased	100	units	@	$	14	=		1,400

During the year, The Shirt Shop sold 650 T-shirts for $19 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.