The Wonderful World of Music 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 Apr. 1 Item Balance Quantity 4 Unit Cost $1,060 6 Sale 2 8 Purchase 10 986 17 Sale 4 30 Purchase 5 986 The sale price of each guitar was $1,620. Gross margin under FIFO is $ Gross margin under weighted-average-cost is $ The moving-weighted-average-cost method produces a lower cost of goods sold (and therefore a higher gross margin) because unit inventory costs are decreasing in this scenario. While FIFO counts the earlier inventory first, the moving-weighted-average-cost method uses all inventory on hand in determining the cost of (Click the icon to view the cost of goods sold calculation from the FIFO perpetual inventory record.) goods sold. (Click the icon to view the cost of goods sold calculation from the moving-weighted-average-cost perpetual inventory record.) Required Calculate the gross margin for The Wonderful World of Music 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.