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: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 440 units 150 units 240 units 80 units @ @ $9 $10 $11 $12 $3,960 1,500 2,640 960 During the year, The Shirt Shop sold 720 T-shirts for $17 each. Require 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.

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: During the year, The Shirt Shop soid 720 T.shirts for $17 each Required o. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost fiow assumptions (1) FIFO, (2) LIFO, and (3) weighted average b. Compute the difference in gross margin between the FFO and LFO cost flow assumptions. 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 LFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Compute the difference in gross margin between the FIFO and LFO cost flow assumptions