Required information [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 20 April 21 July 25 September 19 Purchased 400 units @ $8- Purchased 150 units @ $10 Purchased 200 units @ $12- Purchased 100 units @ $14- During the year, The Shirt Shop sold 650 T-shirts for $19 each. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Gross margin FIFO LIFO $ 3,200 1,500 2,400 1,400 Difference

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