Pronghorn Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 490 bookcases at a cost of $129 each. During June, the company had the following purchases and sales of bookcases:

			Purchases				Sales
Date			Units		Unit cost		Units		Unit price
June	6		1,150		$131
	10						1,050		$186
	14		1,820		132
	16						1,680		191
	26		950		133

Determine the cost of goods sold and the cost of the ending inventory using the average cost formula. (Use unrounded numbers for average cost calculations. Round answers to 2 decimal places. e.g 5.52.)

Cost of goods sold		$enter a dollar amount
Cost of the ending inventory		$enter a dollar amount

Calculate Pronghorn Furnitures gross profit and gross profit margin for the month of June. (Round gross profit margin to 1 decimal place, e.g. 15.1 and gross profit to the nearest whole dollar, e.g. 1525.)

Gross profit		$enter a dollar amount
Gross profit margin		enter a dollar amount	%

Is the gross profit determined in part (b) higher or lower than it would be if Pronghorn Furniture had used the FIFO?

The gross profit is select an option higherlower than it would be using the FIFO cost method because the cost of the product being purchased is select an option risingfalling.