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

Required information (The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 450 units @ $ 9 = $4,050 Apr. 21 Purchased 250 units @ $11 2,750 July 25 Purchased 330 units @ $14 4,620 Sept. 19 Purchased 140 units @ $16 = 2,240 During the year, The Shirt Shop sold 960 T-shirts for $25 each. c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Difference in gross margin between the FIFO and LIFO cost flow assumptions