The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased 400 units @ $8= $3,200 Purchased 200 units @ $10 = 2,000 3,640 Purchased 280 units @ $13 = Purchased 90 units @ $20= 1,800 During the year, The Shirt Shop sold 810 T-shirts for $20 each. c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.

The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations: During the year, The Shirt Shop sold 810 T-shirts for $20 each. - Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions