The Music World carries a large inventory of guitars and other musical instruments. The store uses a perpetual inventory system. Company records indicate the following for a particular line of guitars.

Gross margin under FIFO is so Gross margin under weighted average-cost is $ The Music World carries a large inventory of guitars and other musical instruments. The store uses a perpetual inventory system Company records indicate the following for a particular line of guitars Date Item Quantity Unit Cost Jun 1 Balance 5 $920 6 Sale 3 8 Purchase 12 854 17 Sale 4 30 Purchase 7 854 The sale price of each guitar was $1.620 E (Click the icon to view the cost of goods sold calculation from the FIFO perpetual inventory record.) Click the icon to view the cost of goods sold calculation from the moving-weighted average-cost perpetual inventory record.) The moving-weighted average-cost method produces a cost of goods sold (and therefore a higher gross margin) because unit inventory costs are in this scenario. While counts the earlier inventory first, the , method uses all inventory on hand in determining the cost of goods sold Required Calculate the gross margin for The Music World Store under both the FIFO and the moving-weighted average-cost methods Explain why the gross margin is higher under the moving-weighted-average-cost method. - Moving-weighted average cost perpetual inventory record FIFO perpetual inventory record Date Jun Quantity Unit Cost Total Cost 6 6 920.00 2,760 17 4 863.43 1.840 Date Jun Total 6.214 Quantity Unit Cost Total Cost 6 3 920 2,760 17 2 920 1,840 17 2 854 1.708 7 6.308 Total Print Done