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The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: January 20 April 21 July 25 September 19 Purchased Purchased Purchased Purchased Required 400 units 130 units @ 250 units @ 100 units During the year, The Shirt Shop sold 720 T-shirts for $15 each. $4 = $6 $8 $10 = = $1,600 780 2,000 1,000 a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the follo 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 720 T-shirts for \$15 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the follc 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 720 T-shirts for \$15 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the follc assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions

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