AP7-8A (Calculation of ending inventory and cost of goods sold perpetual system) The following information relates to Hogs Back Falls Ltd.'s inventory transactions during the month of February. Units Cost/Unit Amount Feb. 1 Beginning inventory 7,500 $25.00 $187,500 10 Sale 6,500 14 Purchase 4,000 $26.00 $29.00 $104,000 $14,500 18 Purchase 500 25 Sale 4,000 26 Purchase 4,000 $35.00 $140,000 28 Sale 2,900 All of the units sold were priced at $85.00 per unit. Required a. Hogs Back Falls Ltd. uses the perpetual inventory system. Calculate Hogs Back's cost of goods sold, gross margin, and ending inventory for the month of February using: i. FIFO ii. weighted average. Round per unit cost to two decimal places. b. Which of the cost formulas would produce the higher gross margin