The following information relates to eCycle Ltd.’s inventory transactions during the month of August.All of the units sold were priced at $2,000 per unit.

Required 

a. eCycle Ltd. uses the perpetual inventory system. Calculate eCycle’s cost of goods sold, gross margin, and ending inventory for the month of August using: 

i. FIFO. 

ii. Weighted-average. 

Round per unit cost to two decimal places. 

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

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August 1 6 8 16 20 26 30 Beginning inventory Purchase Sale Purchase Sale Purchase Sale Units 15 35 5 10 40 5 10 Cost/Unit $1,000 $ 800 $1,100 $ 900 Amount $15,000 28,000 11,000 4,500