Chapt 6 Problem Set #2 (due 8AM, Mon Problem 6-73B Inventory Costing Methods (Appendices 6B) Grencia Company uses a periodic inventory system. For 2018 and 2019, Grencia has the following data (assume all purchases and sales are for cash): Activity Purchase Price Units (per unit) Sale Price (per unit) 2018 Beginning inventory 100 $45 Purchase 1, Feb. 25 700 52 Sale 1, Apr. 15 600 $90 Purchase 2, Aug. 30 500 56 Sale 2, Nov. 13 600 90 Purchase 3, Dec. 20 400 58 2019 Sale 3, Mar. 8 400 90 Purchase 4, June 28 900 62 Sale 4, Dec. 18 200 90 Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. Cost of goods sold 2018 135,500 X 2019 135,500 X Cost of ending inventory 12,400 X 0x Gross margin 80,500 X 0 x 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 2018 2019 Cost of goods sold 0x 0x Cost of ending inventory 0 x 0x Gross margin 0 X 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using the average cost method. (Note: Use four decimal places for per- unit calculations and round all other numbers to the nearest dollar.) 2018 2019 Cost of goods sold 0 X 0x Cost of ending inventory x $ 0 X Gross margin 0 x 0x 4. Conceptual Connection: Which method would result in the lowest amount paid for taxes? LIFO- 5. Conceptual Connection: Which method produces the most realistic amount for income? For inventory