Gross margin under FIFO is $ ful World of Music carries a large inventory of guitars and other musical instruments. The store uses a perpetual stem. Company records indicate the following for a particular line of guitars Date Item Quantity Unit Cost Nov 1 Balance 5 $1,060 6 Sale 3 8 Purchase 10 17 Sale 4 30 Purchase 5 992 Gross margin under weighted average-cost is $ 992 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 V method uses all inventory on hand in determining the cost of goods sold. ce of each guitar was $1,740 ne icon to view the cost of goods sold calculation from the FIFO perpetual inventory record.) FIFO Perpetual Inventory Record ne icon to view the cost of goods sold calculation from the moving-weighted average-cost perpetual cord.) Moving-Weighted-Average Cost Perpetual Inventory Record Date e gross margin for The Wonderful World of Music Store under both the FIFO and the moving-weighted average-cost plain why the gross margin is higher under the moving-weighted average-cost method Quantity Unit Cost Total Cost Nov. 6 3 1,060 3.180 Date Quantity Unit Cost Total Cost 17 1,060 . 6 3 1.060.00 2 2. 2,120 1,984 3,180 2.120 4 17 992 17 1,003.33 Total 7. 7.284 Total 7 7,193 Print Done Print Done