You are the vice president of finance of Blue Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2025. These schedules appear below. Schedule 1 Schedule 2 Sales ($5 per unit) $151,500 151.500 Cost of Goods Sold Beginning inventory, January 1 Purchase, January 10 Purchase, January 30 Purchase, February 11 Purchase, March 17 $130.490 136,650 Units The computation of cost of goods sold in each schedule is based on the following data. 11,100 9,100 7,100 10,100 Gross Margin 12,100 $21,010 14,850 Cost per Unit $4.20 4.30 4.40 4.50 4.60 Total Cost $46,620 39,130 31,240 45,450 55,660 Laura Hall, the president of the corporation, cannot understand how two different gross margins can be computed from the same set of data. As the vice president of finance, you have explained to Ms. Hall that the two schedules are based on different assumptions concerning the flow of inventory costs, i.e., FIFO and LIFO. Schedules 1 and 2 were not necessarily prepared in this sequence of cost flow assumptions. K to

You are the vice president of finance of Blue Corporation, i rotail company that prepared two different schedules of gross margin for the fint quarter ended March 31 , 2005. These srthednlas annear below The computation of cost of gocsts sold in each schedule is based en the following dats tauta Hult, the oresident of ties cor poration cannot understand how two diffecent eros murgins can ber computed from ithe same set of data. As the vice president of finance, you how eoplained to Ms. Hall that the twoschedules are based on different assumptions fiow ansumptions Last-in. Fint-out (Scledule 2) i 5 8 at 5 Schedules Computine Endine inventerr