Kim’s Shirt and Tie Shop uses a periodic inventory system. Kim’s completed the following inventory transactions during April, its first month of operations:

a. Compute Kim’s ending inventory and cost of goods sold under FIFO costing.

b. Then compute ending inventory and cost of goods sold under the weighted-average- cost method. Round average unit cost to three decimal places, but round all totals to the nearest cent.

c. Compute gross margin under both methods. Which method results in the higher gross margin?

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Apr. 1 7 13 21 Purchased 10 shirts at $50 each Sold 6 shirts for $80 each Purchased 6 shirts for $55 each Sold 3 shirts for $85 each