Please do not give solution in image format thanku Required informationExercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1[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:January 20April 21July 25September 19Purchased 460 units @ $6 =Purchased 120 units @ $7 =Purchased 220 units @ $9 =Purchased 90 units @ $10 -$ 2,7608401,980900During the year, The Shirt Shop sold 720 T-shirts for $15 each.Exercise 5-5 (Algo) Part bb. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.Gross marginFIFOLIFODifference

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Description: Please do not give solution in image format thanku Required informationExercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1[The following information applies to the questions displayed below.]The Shirt

The gross margin is nothing but the difference between the total cost of goods sold and the total…

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Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [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: $ 2,760 840 January 20 April 21 July 25 September 19 Purchased 460 units @ $6 = Purchased 120 units @ $7 = Purchased 220 units @ $9 = Purchased 90 units @ $10= During the year, The Shirt Shop sold 720 T-shirts for $15 each. Exercise 5-5 (Algo) Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Gross margin FIFO LIFO 1,980 900 Difference