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Cost of Gross ($5 per unit) Goods Sold Margin $149,800 $135,492 $14,308 149,800 40,640 9,160 Sales Schedule 1 Schedule 2 The computation of cost of goods sold in each schedule is based on the following data Cost Total Units per Unit Cost Beginning inventory, January1 10,200 $4.40 $44,880 8,200 4.50 36,900 6,200 4.60 28,520 9,200 4.70 43,240 11,200 4.80 53,760 Purchase, January 10 Purchase, January 30 Purchase, February 11 Purchase, March 17 ane Torville, the president of the corporation, cannot understand how two different gross margins can be computed from the same set of data. As the vice president of finance, you have explained to Ms. Torville that the two schedules are based on different assumptions concerning the flow of inventory costs, Le., FIFO and LIFO. Schedules 1 and 2 were not necessarily prepared in this sequence of cost flow assumptions. e two separate schedules computing cost of goods sold and supporting schedules showing the composition of the ending inventory under both cost flow assumptions. Ayayai Corporation Schedules of Cost of Goods Sold For the First Quarter Ended March 31, 2017 Schedule 1 First-in, First-out Last-in, First-out Schedule 2 Beginning Inventory (Add ||| Purchases Cost of Goods Available for Sale LessLEnding Inventory

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