Stocks, Inc., sells weight-lifting equipment. The sales and inventory records of the company for January through March 2003 were as follows:

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Weight Sets Unit Cost Total Cost Beginning inventory, Jan. 1. 460 $30 $13,800 Purchase, Jan. 16 110 32 3,520 Sale, Jan. 25 ($45 per set). 2131 216 Purchase, Feb. 16 105 Sale, Feb. 27 ($40 per set). 307 36 3-33 3,780 Purchase, March 10 150 28 4,200 Sale, March 30 ($50 per set) 190 90 1. Determine the amounts for ending inventory, cost of goods sold, and gross margin under the following costing alternatives. Use the periodic inventory method, which means that all sales are assumed to occur at the end of the period no matter when they actually oc- curred. Round amounts to the nearest dollar. FIFO b. LIFO C. Average cost 2. Interpretive Question: Which alternative results in the highest gross margin? Why?