Pump-It, Inc., sells weight-lifting equipment. The sales and inventory records of the company for January through March 2012 were as follows:

Required:
1. Determine the amounts for ending inventory, cost of goods sold, and gross margin under the following costing alternatives. Use the perpetual inventory method. Round amounts to the nearest dollar.
a. FIFO
b. LIFO
c. Average cost (calculate unit costs to the nearest cent)
2. Interpretive Question: Which alternative results in the highest gross margin?Why?

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Weight Sets Unit Cost Total Cost S30 Beginning inventory, January I Purchase, January 16 Sale, January 25 (S45 per set) Purchase, February 16 Sale, February 27 (S40 per set) Purchase, March 10 Sale, March 30 ($50 per set) $13,800 110 216 105 307 150 190 3,520 3,780 4,200 . .