Purchase 2 3 4 PAI. LO 10.1 When prices are rising (inflation), which costing method would produce the highest value for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month Number of Units Cost per Unit $6,000 Purchase 7,000 Purchase 7.500 Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG) Solution A. Sales revenue -Cost of goods sold Gross margin B. Sales revenue - Cost of goods sold = Gross margin C. Sales revenue Cost of goods sold Gross margin