At the beginning of its operations in July 2020, Wheaton Pet Shop Ltd. began with 9,300 units of inventory that it purchased at a cost of $16.00 each. The companys purchases during July were as follows:

July 5		7,900 units @ $20.00
Sales during July:
July 2		8,000 units
July 27		5,500 units

Wheaton Pet Shop uses a perpetual inventory system.

Calculate the cost of goods sold for July using the weighted-average cost formula. (Round calculations for cost per unit to 2 decimal places, e.g. 10.52 and final answer to 0 decimal places, e.g. 61,052.)

Cost of goods sold

$Enter the cost of goods sold in dollars rounded to 0 decimal places.

Calculate the cost of goods sold for July using the first-in, first-out cost formula.

Cost of goods sold

$Enter the cost of goods sold in dollars.

Which of the two inventory cost formulas results in the greater gross margin for July?

The Select cost formula. FIFOWeighted-average cost formula results in a greater gross margin for July.

Which of the two inventory cost formulas results in the larger inventory balance at the end of July? (Round calculations for cost per unit to 2 decimal places, e.g. 10.52 and final answers to 0 decimal places, e.g. 61,052.)

		Ending Inventory
Weighted-average		$Enter a dollar amount rounded to 0 decimal places.
FIFO		$Enter a dollar amount rounded to 0 decimal places.

The Select cost formula. FIFOWeighted-average cost formula results in a larger inventory balance at the end of July.