Question - The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations:
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Jan. 20
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Purchased
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400 units
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@ $8 = $3,200
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Apr. 21
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Purchased
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200 units
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@ $10 = 2,000
|
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July 25
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Purchased
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280 units
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@ $13 = 3,640
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Sept. 19
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Purchased
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90 units
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@ $15 = 1,350
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During the year, The Shirt Shop sold 810 T-shirt for $20 each.
Required - Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.