Inventory data for Kaleta Company are presented in E6-6.
In E6-6, Kaleta Company reports the following for the month of June.

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 Cost Total Cost 200 400 JunePurche 300 30 Inventory 100 JuneInventory 12 Purchase Purchase $1,000 2,400 2,100 S5 6