Creative Kaos caves a large inventory of guitar and other musical instruments. The store s a perpetual inventory system Company records indicate the following for a particular line of guitars. Date Item Quantity Unit Cost Balance Gross margin under FIFO Gross margin under weighted average costis . The moving-weighted average cost method produces a cost of goods sold and therefore a higher groue margin) because it inventory costs in this scenario While courts the cartier inventory first, the method uses alinventory on hand in determining the cost of goods sold Purchase 04 30 Purchase The sale price of each guitar w 51,600 am Click the icon to view the cost of goods sold calculation from the FIFO perpetual Inventory record.) m 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 Creative Kaos Store under both the FIFO and the moving weighted average cost methods. Explain why the gross margins higher under the moving weighted average cost method Enter your answer in each of the answer boxes