Required information
[The following information applies to the questionsdisplayed below.]
The Shirt Shop had the following transactions for T-shirts forYear 1, its first year of operations:
| | | | | | | | |
| Jan. 20 | Purchased | 530 | units | @ | $ | 8 | = | $ | 4,240 | |
| Apr. 21 | Purchased | 330 | units | @ | $ | 10 | = | | 3,300 | |
| July 25 | Purchased | 410 | units | @ | $ | 13 | = | | 5,330 | |
| Sept. 19 | Purchased | 220 | units | @ | $ | 15 | = | | 3,300 | |
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During the year, The Shirt Shop sold 1,200 T-shirts for $24each.
c. Compute the difference in gross marginbetween the FIFO and LIFO cost flow assumptions.
