Saddlery Company sells leather saddles and equipment for horse enthusiasts. Saddlery uses the periodic inventory system. The following schedule relates to the companys inventory for the month of May:

						Cost		Sales
May 1		Beginning inventory		90 units		$58,500
5		Sale		60 units				$50,700
9		Purchase		30 units		$21,450
13		Purchase		120 units		$93,600
24		Sale		120 units				$109,200
27		Sale		30 units				$31,200
30		Purchase		45 units		$38,610

Calculate Saddlery Companys cost of goods sold, gross margin, and ending inventory using FIFO.

Cost of goods sold		$
Gross margin		$
Ending Inventory		$

eTextbook and Media

Calculate Saddlery Companys cost of goods sold, gross margin, and ending inventory using weighted-average. (Round calculations for cost per unit to 2 decimal places, e.g. 10.52 and final answers to 2 decimal places, e.g. 610.52.)

Cost of goods sold		$
Gross margin		$
Ending Inventory		$

eTextbook and Media

Which cost formula produced the higher gross margin? (Round answers to 2 decimal places, e.g. 61.05%.)

		Gross Margin Ratio
FIFO		%
Weighted-average		%

FIFOWeighted-average produces the higher gross margin.