The Canvas Company (TCC) began August 2014 with 100 units of inventory that cost $60 each. The sale price of each of those units was $100. During August, TCC completed these inventory transactions:

Required
1. The above data are taken from TCC's perpetual inventory records. Which cost method does the company use?
2. Compute TCC's cost of goods sold for August 2014 under the
a. Perpetual inventory system
b. Periodic inventory system
3. Compute the gross margin for August 2014.

Transcribed Image Text:

Units 32 160 68 18 Unit Sale Price Unit Cost Sale Purchase Sale Sale Sale Purchase Sale Aug. 3 $60 62 60 62 62 $100 11 19 24 30 31 100 104 70 36 12 104 64 62 104