Problem 6-5A Sandy's Office Supplies distributes office furniture. The company's fiscal year ends on March 31, 2017. On January 31, 2017, one department in the company had in inventory 20 office suites that cost $1,800 each. During the quarter, the department purchased merchan- dise on account as follows: Units Total Unit Cost January 60 $111,000 $1,850 February 40 1,900 76,000 1,950 March 30 58,500 Sales for each month in the quarter were as follows: Unit Selling Price Units Total January February 50 $180,000 $3,600 20 3,700 74,000 March 3,800 129,200 34 Operating expenses in the quarter were $110,000. Assume that the company uses a perpetual inventory system. Also assume that monthly purchases of inventory occur on the first day of each month. Required 1. Determine the cost of the department's ending inventory at March 31, 2017, under (a) moving-weighted-average costing and (b) FIFO costing. 2. Prepare the department's income statement for the quarter ended March 31, 2017, under each method described in Requirement 1. Show gross margin and operating income and note the difference Problem 6-5A Sandy's Office Supplies distributes office furniture. The company's fiscal year ends on March 31, 2017. On January 31, 2017, one department in the company had in inventory 20 office suites that cost $1,800 each. During the quarter, the department purchased merchan- dise on account as follows: Units Total Unit Cost January 60 $111,000 $1,850 February 40 1,900 76,000 1,950 March 30 58,500 Sales for each month in the quarter were as follows: Unit Selling Price Units Total January February 50 $180,000 $3,600 20 3,700 74,000 March 3,800 129,200 34 Operating expenses in the quarter were $110,000. Assume that the company uses a perpetual inventory system. Also assume that monthly purchases of inventory occur on the first day of each month. Required 1. Determine the cost of the department's ending inventory at March 31, 2017, under (a) moving-weighted-average costing and (b) FIFO costing. 2. Prepare the department's income statement for the quarter ended March 31, 2017, under each method described in Requirement 1. Show gross margin and operating income and note the difference