8 The Wonderful World of Music carries a large inventory of guitars and other musical instruments. The store uses a perpetual inventory system Company records indicate the following for a particular line of guitars. Date Item Quantity Unit Cost Jun. 1 Balance 5 $1,000 6 Sale 3 8 Purchase 13 936 17 Sale 4 30 Purchase 936 The sale price of each guitar was $1,740 (Click the icon to view the cost of goods sold calculation from the FIFO perpetual inventory record.) (Click the icon to view the cost of goods sold calculation from the moving-weighted average cost perpetual inventory record.) Required Calculate the gross margin for The Wonderful World of Music Store under both the FIFO and the moving-weighted average-cost methods. Explain why the gross margin is higher under the moving-weighted average-cost method. What's a Weil Gross margin under FIFO is $ Gross margin under weighted average-cost is $ The moving-weighted average-cost method produces a cost of goods sold (and therefore a higher gross margin) because unit inventory costs are In this scenario. While counts the earlier inventory first, the method uses all inventory on hand in determining the cost of goods sold. FIFO perpetual inventory record Date Quantity Unit Cost Total Cost Jun. 6 3 1,000 3,000 17 1,000 N 2,000 1,872 N 17 936 Total 7 6.872 What's a Weihnachtsmarkt? Print Done le Moving-weighted-average cost perpetual inventory record Date Jun Quantity Unit Cost Total Cost 6 3 1,000.00 3,000 4 17 2,000 944.53 6,778 Total 7 sil What's a Weihnachtsmarkt? POINT Done