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

				Units		Cost/Unit		Amount
Feb. 1		Beginning inventory		7,500		$23.00		$172,500
10		Sale		6,500
14		Purchase		4,000		$24.00		$96,000
18		Purchase		500		$28.00		$14,000
25		Sale		4,300
26		Purchase		4,200		$33.00		$138,600
28		Sale		3,200

All of the units sold were priced at $92.00 per unit.

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

Cost of Goods Sold		$
Gross Margin		$
Ending Inventory		$

Hogs Back Falls Ltd. uses the perpetual 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 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		$

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

The FIFOweighted average method results in the higher gross margin.