Saddlery Company sells leather saddles and equipment for horseenthusiasts. Saddlery uses the perpetual inventory system. Thefollowing schedule relates to the company’s inventory for the monthof May:

						Cost		Sales
May 1		Beginning inventory		150 units		$90,000
5		Sale		100 units				$78,000
9		Purchase		50 units		$33,000
13		Purchase		200 units		$144,000
24		Sale		200 units				$168,000
27		Sale		50 units				$48,000
30		Purchase		75 units		$59,400

Calculate Saddlery Company’s cost of goods sold, gross margin,and ending inventory using FIFO.

Cost of goods sold		$Enter a dollar amount.
Gross margin		$Enter a dollar amount.
Ending Inventory		$Enter a dollar amount.

Calculate Saddlery Company’s cost of goods sold, gross margin, andending inventory using weighted-average. (Roundcalculations for cost per unit to 2 decimal places, e.g. 10.52 andfinal answers to 0 decimal places, e.g.61,052.)

Cost of goods sold		$Enter a dollar amount rounded to 0decimal places.
Gross margin		$Enter a dollar amount rounded to 0decimal places.
Ending Inventory		$Enter a dollar amount rounded to 0decimal places.

Which cost formula produced the higher gross margin?(Round answers to 2 decimal places, e.g.61.05%.)

		Gross MarginRatio
FIFO		Enter percentages rounded to 2decimal places. %
Weighted-average		Enter percentages rounded to 2decimal places. %

Select cost formula.                                                                 FIFOWeighted-averageproduces the higher gross margin.

Thank you