The following information relates to Toolworks Ltd.s inventory transactions during the month of October.

				Units		Cost/Unit		Amount
Oct. 1		Beginning inventory		2,480		$ 12.70		$ 31,496
5		Sale		350
11		Purchase		1,190		$ 13.20		$ 15,708
13		Purchase		500		$ 12.70		$ 6,350
15		Sale		1,490
29		Purchase		2,470		$ 11.10		$ 27,417
31		Sale		3,570

All of the units sold on October 5 were priced at $ 27.00 per unit. All of the units sold on October 15 and 31 were priced at $ 33.00 per unit.

Toolworks Ltd. uses the perpetual inventory system. Calculate Toolworks cost of goods sold, gross margin, and ending inventory for the month of October using FIFO.

Cost of Goods Sold		$
Gross Margin		$
Ending Inventory		$

eTextbook and Media

Toolworks Ltd. uses the perpetual inventory system. Calculate Toolworks cost of goods sold, gross margin, and ending inventory for the month of October weighted-average. (Round calculations for cost per unit to 2 decimal places, e.g. 10.52 and final answers to 0 decimal places, e.g. 61,052.)

Cost of Goods Sold		$
Gross Margin		$
Ending Inventory		$

eTextbook and Media

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

The FIFOweighted-average method results in the higher gross margin.