Exercise 8-16 You are the vice president of finance of Blue Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2017These schedules appear below Sales Cost of Gross ($5 per unit) Goods Sold Margin 151,500 130,490 $21,010 136,650 14,85O Schedule 1 Schedule 2 151,500 The computation of cost of goods sold in each schedule is based on the following data. Cost Units per Unit Cost Total Beginning inventory, January 1 Purchase, January 10 Purchase, January 30 Purchase, Fcbruary 11 Purchase, March 17 11,100 9,100 7,100 10,100 12,100 4.20 4.30 39,130 4.40 31,240 4.50 45.450 4.60 55,660 6,620 Janc Torville, the president of the corporation, cannot understand how two different gross margins can be computed from the same set of data. As the vice president of finance, you have explained to Ms. Torville that the two schedules are based on different assumptions concerning the flow of inventory costs, , FIFO and LIFO. Schedules 1 and 2 were not necessarily prepared in this sequence of cost low assumptions. Prepare two separate schedules computing cost of goods sold and supporting schedules showing the composition of the ending inventory under both cost flow assumptions. Blue Corporation Schedules of Cost of Goods Sold For the First Quarter Ended March 31, 2017 Schedule 1 Schedule 2 First-in, First-out Last-in, First-out hedules Computing Ending Inventor