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(Solved): The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: ...



The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: January 20Purchased370units@$12=$4,440April 21Purchased140units@$13=1,820July 25Purchased220units@$15=3,300September 19Purchased100units@$16=1,600 During the year, The Shirt Shop sold 690 T-shirts for $21 each. Required 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 Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.



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