Gross margin under FIFOS Gross mergin under weighted average costis Music Unlimited carries a large inventory of guitars and other musical instruments. The store ses a perpetual inventory system Company records indicate the folowing for a particular line of guitars Date Item Quantity Unit Cost Apr1 Balance 3 $1,020 6 Sale 1 B Purchase 10 056 17 Sale 4 30 Purchase 5 The sale price of each guitar was $1,700 (Click the icon to view the cost of goods sold calculation from the FIFO perpetual inwentory record.) Click the icon to view the cost of goods sold calculation from the moving-weighted average-cost perpetual inventory record.) 956 The moving weighted average cost method produces cost of goods sold and therefore a higher gross margin) because it invofory costs are in this scenario Whio counts the calor inventory first, the method uses al Inventory on hand in determining the cost of goods sold ge inventory of guitars tory system Company - FIFO Perpetual Inventory Record Qua Item Balance Sale Purchase Sale Purchase Date Quantity Unit Cost Total Cost Apr 6 1 1 020 17 1,020 2 2 1,020 2,040 1,912 o 17 956 r was $1,700 the cost of goods so d.) v the cost of goods so E-cost perpetual invent Total 5 4,972 Print Done 6 S Moving-Weighted-Average Cost Perpetual Inventory Record It Ba Pud Date Quantity Unit Cost Total Cost , 6 1,020.00 1,020 Pur 4 17 966 67 2,040 vas Total he co 4,887 he co Eost Print Done