2. Pearson Company uses a periodic inventory system. During the first quarter of

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2. Pearson Company uses a periodic inventory system. During the first quarter of 2014, it sold 13,000 cases of Product A for $140,000. Facts related to its beginning inventory and purchases are as follows:

Jan                  1          Beginning inventory                       5,000 cases @ $4.00

                        10        purchases                                          4,000 cases @ $5.00

Feb.                13        purchases                                          8,000 cases @ $4.50

Mar.                5          purchases                                          2,500 cases @ $5.00

For the quarter ended March 31, 2014, compute the ending inventory, cost of goods sold, and gross margin under three methods: (a) average-cost, (b) FIFO, and (c) LIFO. (Show your work)

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2. Pearson Company uses a periodic inventory system. During the first quarter of

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