You are the vice president of finance of Novak Corporation, a retail company that prepared two different schedules of gross margin for the first fiscal quarter ended July 31, 2017. These schedules appear below. Sales ($15 per unit) Cost of Goods Sold Gross Margin Schedule 1 $ 571,500 $ 232,985 $ 338,515 Schedule 2 571,500 242,065 329,435 The computation of cost of goods sold in each schedule is based on the following data. Units Cost per Unit Total Cost Beginning inventory, May 1 12,100 $ 6.00 $ 72,600 Purchase, May 2 14,100 6.10 86,010 Purchase, June 5 17,100 6.25 106,875 Purchase, June 18 5,100 6.50 33,150 Purchase, July 7 10,100 6.60 66,660 Debra King, 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. King 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. Prepare two separate schedules computing cost of goods sold and supporting schedules showing the composition of the ending inventory under both cost flow assumptions (assume periodic system).