Ohsweken Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at April 1, of 150 tents. This consists of 50 tents at a cost of $210 each and 100 tents at a cost of $225 each. During April, the company had the following purchases and sales of tents:

Instructions
(a) Determine the cost of goods sold and the cost of the ending inventory using FIFO.
(b) Calculate Ohsweken Outdoors's gross profit and gross profit margin for the month of April.
(c) Is the gross profit determined in part (b) higher or lower than it would be if Ohsweken Outdoors had used the average cost method? Explain.

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Purchases Sales Units Unit Cost $275 290 Units Unit Price $400 Apr. 3 10 17 24 30 75 250 200 200 400 300 400