Inventory data for Eastland Company are presented in E.

Instructions
(a) Compute the cost of the ending inventory and the cost of goods sold using the average-cost method.
(b) Will the results in (a) be higher or lower than the results under (1) FIFO and (2) LIFO?
(c) Why is the average unit cost not$6?

Transcribed Image Text:

Units Unit Cst Total Cost June Inventory 200 12 Purchase 300 23 Purchase 500 0Inventory 160 $5 6 7 $1,000 1,800 3,500