Problem: Module 2 Textbook Problem 10 Learning Objective: Module 2-7 Show how different inventory cost flow methods (specific identification, FIFO, LIFO, and weighted average) affect financial statements The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: e Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 420 units 150 units 230 units B0 units $ 9 - $3,780 $ 10- 1,500 $12 2,760 $13 - 1,040 During the year, The Shirt Shop sold 730 T-shirts for $18 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. Required A Required B 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. (Round Intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) During the year, The Shirt Shop sold 730 T-shirts for $18 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assu 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. Required A Required B Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming t assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations to 2 decin answers to the nearest whole dollar amount.) FIFO LIFO Weighted Average Ending inventory Required A Required B > During the year, The Shirt Shop sold 730 T-shirts for $18 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance 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 assum Complete this question by entering your answers in the tabs below. Required A Required B ALLA Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO LIFO Difference Gross margin