Ross Sales had the following transactions for DVDs in 2010, its first year of operations.

During the year, Ross Sales sold 850 DVDs for $60 each.

Required

a. Compute the amount of ending inventory Ross 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.

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Jan. 20 Apг. 21 July 25 Sept. 19 Purchased 75 units @ $15 Purchased 450 units @ $20 $1,125 9,000 6,900 2,600 Purchased 300 units @ $23 Purchased 100 units @ I| || ||||