Exercise $5-20$A $($Algo$)$ Effect of Inventory cost flow on ending Inventory balance and gross margin LO $5-6$

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 $$17$ each.

Required

a$.$ Compute the amount of ending inventory The Shirt Shop 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.

Complete this question by entering your answers in the tabs below.

Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions:

$(1)$ FIFO

$(2)$ LIFO and

$(3)$ weighted average

Note: Round intermediate calculations to $2$ decimal places and final answers to the nearest whole dollar amount.

Show les a

$\backslash$table$[[,$FIFO,LIFO,$\backslash$table$[[$Weighted$],[$Average$]]],[$Ending inventory,$$3,600,,]]$