A Advantage Luggage Company began August 19X8 with 30 units of inventory that cost \(\$ 40\) each. The sale price of these units was \(\$ 70\). During August AAdvantage experienced these inventory transactions:

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1. The above data are taken from AAdvantage's perpetual inventory records. Which cost method does AAdvantage use?
2. Compute AAdvantage's cost of goods sold for August under the

a. Perpetual inventory system

b. Periodic inventory system 3. Compute gross margin for August.

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Units Unit Cost Unit Sale Price Aug. 3 Sale... 16 $40 $70 8 Purchase.. 80 41 72 11 Sale... 14 40 70 16 41 72 19 Sale. 9 41 72 24 Sale.. 35 41 30 Purchase. 18 42 31 Sale....... 6 41 222 72 73 72