Northeast Tire began May with 50 units of inventory that cost $264 each. During May, Northeast Tire completed these inventory transactions:

Required

1. The above data are taken from Northeast Tire’s perpetual inventory records. Which cost method does Northeast Tire use?

2. Compute Northeast Tire’s cost of goods sold and gross margin for May under the

a. Perpetual inventory system

b. Periodic inventory system

Transcribed Image Text:

283 May 2 13 17 22 29 Purchase Sale Sale Sale Purchase Sale Purchase Units 12 27 23 3 24 31 24 Unit Cost $270 264 264 270 270 270 290 Unit Selling Price $360 360 370 370