Problem 6-5A Computing ending inventory bySandy's Office Supplies distributes office furniture. The company's fiscal ye applying two inventory costing March 31, 2017. On January 1, 2017, one department in the company had in inven methods in a perpetual inventory office suites that cost $1,800 each. During the quarter, the department purchased mer system dise on account as follows: Total Units 60 40 30 Unit Cost $1,850 1,900 1,950 Gross margin 1(a), $189,193 $111,000 January February March 76,000 58,500 Sales for each month in the quarter were as follows: January February March Units 50 20 34 Unit Selling Price $3,600 3,700 3,800 Total $180,000 74,000 129,200 Operating expenses in the quarter were $110,000 Assume that the company uses a perpetual inventory system. Also assume that monthly purchases of inventory occur on the first day of each month. Required 1. Determine the cost of the department's ending inventory at March 31, 2017, under (a) moving-weighted-average costing and (b) FIFO costing. 2. Prepare the department's income statement for the quarter ended March 31, 2017, under each method described in Requirement 1. Show gross margin and operating income and note the difference