Outdoor Experience Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 200 tents. This consists of 50 tents at a cost of $200 and 150 tents at a cost of $225. During June, 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 the FIFO cost formula.
(b) Calculate Outdoor Experience's gross profit and gross profit margin for the month of June.
(c) Is the gross profit determined in part (b) higher or lower than it would be if Outdoor Experience had used the average cost formula? Explain

Purchases Sales Units 350 300 Date Unit Cost $205 210 Unit Price June 9 12 16 21 24 120 280 375 $320 320 330