Measure cost of goods sold and ending inventoryperpetual system

1. P5-46B Whitewater Sports Ltd. began July 2017 with 50 backpacks that cost $19 each. The sale price of each backpack was $36. During July, Whitewater completed these inventory transactions:

   			Units	Unit Cost	Unit Sale Price
   July	2	Purchase	12	$20
   	8	Sale	37		$36
   	13	Sale	13		36
   		Sale	4		37
   	17	Purchase	24	20
   	22	Sale	15		37

Requirement

1. Determine the stores cost of goods sold, gross profit, and ending inventory using (a) FIFO and (b) weighted-average assuming the perpetual system is used.

2. How would your answer change under (a) FIFO and (b) weighted-average cost if the periodic system was used?

3. How do you determine which inventory system to use: perpetual or periodic?