Pharoah Company sells leather saddles and equipment for horse enthusiasts. Pharoah uses the perpetual inventory system. The

following schedule relates to the company's inventory for the month of May:

$($a$1)$

Your answer is correct.

Calculate Pharoah Company's cost of goods sold, gross margin, and ending inventory using FIFO.

Cost of goods sold $

Gross margin $

Ending inventory $

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$($a$2)$

Your answer is correct.

Calculate Pharoah Company's cost of goods sold, gross margin, and ending inventory using weighted$-$average. $($Round calculations

for cost per unit to $2$ decimal places, e$.$g$.10\mathrm{.}52$ and final answers to $0$ decimal places, e$.$g$.61,052.)$

Cost of goods sold $

Gross margin $

Ending inventory $$75120$

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$($b$)$

Calculate Pharoah Company's gross margin ratio using: $($Round answers to $2$ decimal places, eg$.61\mathrm{.}05\%.)$

i$.$ FIFO

ii$.$ Weighted$-$average

Which cost formula produced the higher gross margin?

produces the higher gross margin.