Dene Company uses a periodic inventory system and its accounting records include the following inventory information for the month of July:

A physical inventory count determined that 225 units were on hand at July 31.
Instructions
(a) Calculate the ending inventory and the cost of goods sold under (1) FIFO and (2) average.
(b) For part 2 of instruction (a), explain why the average unit cost is not $6.50.
(c) How do the results for instruction (a) diff er from E6-6, where the same information was used in a perpetual inventory system?

Transcribed Image Text:

UnitsUnit Cost Total Cost July1 Inventory on hand 150 2.30 490 175 $5 6 $ 750 12 Purchase 16 Purchase 23 Purchase 1,380 3,430 1,400