Calculation of ending inventory, cost of goods sold, and gross marginperpetual system

The Soft Touch Company sells leather furniture. The following schedule relates to the company's inventory for the month of April:

Soft Touch uses the perpetual inventory system.

Problem:

a. Calculate Soft Touch Company's cost of goods sold, gross margin, and ending inventory using:

i.FIFO

ii.Weighted-average

b. Which cost formula produced the higher gross margin?

Sales Cost $45,000 31,250 Apri 1 Beginning inventory 75 units 50 units 30 units 25 units 55 units 40 units 50 units 3 Purchase $33,000 5 Sale 11Purchase 15Sale 22 Sale 28 Purchase 16,250 68,750 48,000 33,750