Oriole Company uses a perpetual inventory system and reports the following inventory transactions for the month of July:

				Units				Unit Cost			Total Cost
July 1		Inventory			150			$6.00			$900.00
12		Purchases			230			7.75			1,782.50
20		Sale			(250)
28		Purchases			490			9.00			4,410.00

Calculate the cost of goods sold and ending inventory under (1) FIFO and (2) weighted average. (Round the weighted average cost per unit to two decimal places, e.g. 5.27 and final answers to 2 decimal places, e.g. 5,275.75.)

		FIFO		Weighted average
Cost of goods sold		$		$
Ending inventory		$		$

Which cost formula gives the higher ending inventory?

BothWeighted averageFIFO cost formula gives the higher ending inventory.

Which cost formula results in the higher cost of goods sold?

Weighted averageBothFIFO cost formula results in the higher cost of goods sold.