Stocks, Inc., sells weight-lifting equipment. The sales and inventory records of the company for January through March 2012 were as follows:

Required:
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 occurred. Round amounts to the nearest dollar.
a. FIFO
b. LIFO
c. Average cost
2. Interpretive Question: Which alternative results in the highest gross margin?Why?

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Weight Sets 460 110 216 105 307 150 190 Unit Cost $30 32 Total Cost $13,800 3,520 Beginning inventory, JanuaryI.. Purchase, January 16.^-_.. Sale, January 25 (S45 per seti)^^H-.... Purchase, February 16 36 3,780 4,200 Purchase, March 10 Sale, March 30 (S50 per set) 28