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

Jan. 20	Purchased	400	units	@	$	4	=	$	1,600
Apr. 21	Purchased	130	units	@	$	6	=		780
July 25	Purchased	250	units	@	$	8	=		2,000
Sept. 19	Purchased	100	units	@	$	10	=		1,000

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

Required

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.

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