You are the vice president of finance of Swifty Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2017. These schedules appear below. Cost of Goods Sold Sales Gross ($5 per unit) Margin $151,400 $133,398 $18,002 Schedule 1 139,622 11,778 Schedule 2 151,400 The computation of cost of goods sold in each schedule is based on the following data Cost Total Units Cost per Unit Beginning inventory, January 1 $4.30 11,150 $47,945 Purchase, January 10 9,150 4.40 40,260 Purchase, January 30 7,150 4.50 32,175 Purchase, February 11 10,150 4.60 46,690 4.70 57,105 Purchase, March 17 12,150 Jane Torville, 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. Torville 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. Swifty Corporation Schedules of Cost of Goods Sold For the First Quarter Ended March 31, 2017 Schedule 1 Schedule 2 First-in, First-out Last-in, First-out 47945 47945 Beginning Inventory Add Purchases 176230 176230 224175 Cost of Goods Available for Sale 224175 Less Ending Inventory Cost of Goods Sold Schedules Computing Ending Inventory First-in, First-out (Schedule 1) X X Last-in, First-out (Schedule 2) at X at at at X