5 Homework Saved Required information Exercise 5-5 Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 400 units 200 units 289 units 90 units @ $ 8 $3,200 @ $ 10 2,000 @ $10 3,640 @ $ 15 1,350 During the year , The Shirt Shop sold 810 T-shirts for $20 each. Exercise 5-5 Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO LIFO Difference Gross margin 5 Homework Saved Required information Exercise 5-5 Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 400 units 200 units 289 units 90 units @ $ 8 $3,200 @ $ 10 2,000 @ $10 3,640 @ $ 15 1,350 During the year , The Shirt Shop sold 810 T-shirts for $20 each. Exercise 5-5 Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO LIFO Difference Gross margin