The following information relates to Hogs Back Falls Ltd.s inventory transactions during the month of February.

All of the units sold were priced at $83.00 per unit.

Hogs Back Falls Ltd. uses the periodic inventory system. Calculate Hogs Backs cost of goods sold, gross margin, and ending inventory for the month of February using FIFO.

Hogs Back Falls Ltd. uses the periodic inventory system. Calculate Hogs Backs cost of goods sold, gross margin, and ending inventory for the month of February using weighted-average. (Round calculations for cost per unit to 4 decimal places, e.g. 10.5217 and final answers to 0 decimal places, e.g. 61,052.)

Which of the cost formulas would produce the higher gross margin?

FIFO or WEIGHTED AVG.

Cost/Unit $26.00 Amount $182,000 Feb. 1 10 14 18 25 26 28 Beginning inventory Sale Purchase Purchase Sale Purchase Sale Units 7,000 5,900 3,900 600 3,900 3,600 3,200 $27.00 $31.00 $105,300 $18,600 $35.00 $126,000 Cost of Goods Sold $ Gross Margin $ Ending Inventory $ Cost of Goods Sold $ Gross Margin $ $ $ Ending Inventory $ produces the higher gross margin