Exercise 8-16 You are the vice president of finance of Metlock Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2017. These schedules appear below Sales Cost of Gross Schedule 1 Schedule 2 ($5 per unit) Goods Sold Margin $128,432 $23,968 134,196 18,204 $152,400 152,400 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, February 11 Purchase, March 17 10,800 8,800 6,800 9,800 11,800 $4.10 $44,280 4.20 36,960 4.30 29,240 4.40 43,120 4.50 53,100 Jane 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, i.e., FIFO and LIFO. Schedules 1 and 2 were not necessarily prepared in this sequence of cost flow 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