1. Determine the cost of goods sold and ending inventory using FIFO.

Zella, Inc. receives inventory on Mondays of each week. Sales are made throughout the week, but only recorded weekly on Fridays. Inventory is maintained on a perpetual basis. Zella has a beginning inventory of 4,000 purchased at $5 each. The following purchases and sales were recorded during March: Required: 1. Determine the cost of goods sold and ending inventory using FIFO. 2. Determine the cost of goods sold and ending inventory using LIFO. 3. The selling price is $10 per unit. Operating expenses are $50,000. Determine the gross margin and net income to be reported under each cost flow assumption [ignore income taxes]