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

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Question

Accounting

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 650 T-shirts for $14 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.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
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