S69 Kims Shirt and Tie Shop uses a periodic inventory system. Kims completed the following inventory transactions during April, its first month of operations:

Apr. 1	Purchased 10 shirts at $50 each
7	Sold 6 shirts for $80 each
13	Purchased 6 shirts for $55 each
21	Sold 3 shirts for $85 each

1. Compute Kims ending inventory and cost of goods sold under FIFO costing.
2. Then compute ending inventory and cost of goods sold under the weighted-average-cost method. Round average unit cost to three decimal places, but round all totals to the nearest cent.
   3. Compute gross margin under both methods. Which method results in the higher gross margin?

Computing FIFO and weighted-average-cost amounts in a periodic system Gross margin, FIFO, $335