The following information is provided for Clova Ltd. (Clova):

Required:
a. Calculate ending inventory on December 31, 2017 and 2018, and cost of sales and gross margin for the years ended December 31, 2017 and 2018 for Clova, using FIFO and average cost. Assume that Clova uses a periodic inventory control system.
b. Explain the results you obtained in (a). Do you find anything unusual about the amounts you calculated for ending inventory, cost of sales, and gross margin under each of the costformulas?

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Number of units 50,000 200,000 250,000 190,000 270,000 Purchase price Selling price per unit Inventory on hand on January 1, 2017 Inventory purchases during 2017 Inventory purchases during 2018 Sales during 2017 Sales during 2018 per unit $5 $5 $5 $11 $11