Date Transaction Units Unit Cost Total Cost June 1 Inventory 175 $6 $1,050 June 12 Purchase 500 $7 $3,500 June 23 Purchase 325 $8 $2,600 June 30 Inventory 350 (3 points) Question 1 - What is Milky Way Company's gross margin for the month of June, assuming that Milky Way uses FIFO and has a unit selling price of $12? (3 points) Question 2 - What is Milky Way Company's gross margin for the month of June, assuming that Milky Way uses weighted average and has a unit selling price of $12? (1 point) Question 3 - Explain why the average cost per unit from Question 2 is not exactly $7. Problem 2 Sam, who is a first year staff accountant at ABC Accounting Company, was preparing the bank reconciliation for a client for the month of May. He has realized that he needs some help in preparing the bank reconciliation...his version is found below. Unadjusted Bank Balance Add: Deposits in Transit Add: collection by bank Add: interest income earned Subtract: Error in recording check #453 as $2150 instead of the correct 15,398.05 2,452.87 2,095.00 251.32 Unadjusted Book Balance Add: NSF check Add: Bank error (bank erroneously withdrew $1,600) 14,649.45 250.68 1,600.00 Subtract: Outstanding chks (3,215.83)