10 P-F:6-38 Accounting for inventory using the perpetual inventory system-FIFO This problem continues the Canyon Canoe Company situation from Chapter 1:5. At the beginning of January 2025, Canyon Canoe Company decided to carry and sell T-shirts with its logo printed on them. Canyon Canoe Company uses the perpetual inventory system to account for the inventory. During February 2025, Canyon Canoe Company completed the following merchandising transactions: Feb. 2 Sold 60 T-shirts at $10 each. 5 Purchased 50 T-shirts at $6 each. 7 Sold 45 T-shirts for $10 each. 8 Sold 20 T-shirts for 510 each. Canyon Canoe Company realized the inventory was running low, so it placed a rush order and purchased 20 T-shirts. The premium cost for these shirts was 57 each Placed a second rush order and purchased 40 T-shirts at $7 each. 13 Sold 20 T-shirts for $10 each. 15 Purchased 50 T-shirts for 56 each. 20 In order to avoid future rush orders, purchased 150 T-shirts. Due to the volume of the order, Canyon Canoe Company was able to negotiate a cost of $5 each 21 Sold 40 T-shirts for 510 each. 22 Sold 35 T-shirts for $10 each. 24 Sold 20 T-shirts for $10 each. 25 Sold 45 T-shirts for $10 each. 27 Sold 40 T-shirts for $10 each. 12 Requirements 1. Assume Canyon Canoe Company began February with 94 T-shirts in inventory that cost $5 each. Prepare the perpetual inventory records for February using the a. FIFO b. LIFO 2. For each method a. What is the ending inventory balance in dollars and units? b. What is the dollar value of COGS? c. What is gross margin