University Sales had the following transactions for T-shirts for 2011, its first year of operations.

During the year, University Sales sold 725 T-shirts for \(\$ 20\) each.
Required

a. Compute the amount of ending inventory University would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.

b. Record the above transactions in general journal form and post to T-accounts assuming (1) FIFO, (2) LIFO, and (3) weighted average methods. Use a separate set of journal entries and T-accounts for each method. Assume all transactions are cash transactions.

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

Jan. 20 Apr. 21 Purchased 450 units @ $ 5 Purchased 200 units @ $ 6 $2,250 1,200 July 25 Purchased 100 units @ $10 1,000 Sept. 19 Purchased 75 units @ $ 8 600