Pump-lIt, Inc., sells weight-lifting equipment. The sales and inventory records of the company for January through March 2003 were as follows: Weight Sets Unit Cost Total Cost Beginning inventory, Jan.1........... 460 $30 $13,800 Ptirchasem Janey Gteyaer eopacciisne Sie 110 32 3,520 Sale, Jan. 25 ($45 per set)... 2..4..2.00. 216 Burchasemrebs Gi. sctacia ctanctel< co eek eee 105 36 3,780 Sale, Feb. 27 ($40 per set)............. 307 Purchase avianchel Oly sereetaaa s tieeee eee 150 28 4,200 Sale, March 30 ($50 per set)........... 190 1. Determine the amounts for ending inventory, cost of goods sold, and gross margin under the following costing alternatives. Use the perpetual inventory method. Round amounts to the nearest dollar. ape EIFO

b. LIFO

c. Average cost (calculate unit costs to the nearest cent) 2. Interpretive Question: Which alternative results in the highest gross margin? Why?