Question: 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

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?

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

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