The Soft Inc. sells leather furniture. The following schedule relates to the companys inventory for the month of April:

			Cost	Sales
April 1	Beginning inventory	75 Units	$45,000
3	Purchase	50 Units	31,250
5	Sale	30 Units		33,000
11	Purchase	25 Units	16,250
15	Sale	55 Units		68,750
22	Sale	40 Units		48,000
28	Purchase	50 Units	33,750

Soft Inc. uses the periodic inventory system.

Required:

a. Calculate the cost of goods sold and ending inventory under each of the following costing assumptions:

1. FIFO

2. Weighted average

b. Determine the gross margin under each of the costing assumptions calculated in part a. Which of the costing assumption produced the higher gross margin?