The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: e January 20 April 21 = 330 units 150 units 240 units 60 units July 25 @ @ e $7 = $8 $10 = $12 = During the year, The Shirt Shop sold 620 T-shirts for $17 each. Required Purchased Purchased Purchased September 19 Purchased $2,310 1,200 2,400 720 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. b. 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 Year 1, its first year of operations: During the year, The Shirt Shop sold 620 T-shirts for \$17 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. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions