Costless Company sells discounted shoes to the fashion-oriented consumer. The following schedule relates to the company's inventory for the month of March:

Cost Sales

March 1 Beginning inventory3,000 units $91,500

7 Purchase 1,000 units 40,000

8 Purchase 1,500 units 75,000

15 Sale 3,500 units $315,000

20 Sale 700 units 52,500

25 Purchase 500 units 15,020

27Sale 1,200 units 72,000

Costless Company uses the perpetual inventory system.

a. Calculate Costless Companys cost of goods sold, gross margin, and ending inventory using:

i. FIFO

ii.weighted-average. Round per unit cost to two decimal places.

b. Which cost formula produced the higher gross margin?

If your instructor has assigned the Appendix to this chapter, redo the above problem assuming that the company uses the periodic inventory system. Round weighted-average per unit cost to two decimal places.