Inventory data for Jeters Company are presented in E6-7.

In E6-7

Jeters Company reports the following for the month of June.

Instructions
(a) Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 410 units occurred on June 15 for a selling price of $8 and a sale of 50 units on June 27 for $9.
(b) How do the results differ from E6-7?
(c) Why is the average unit cost not $6 [($5 + $6 + $7) ÷ 3 = $6]?

Transcribed Image Text:

Date Explanation Units Unit Cost Total Cost 120 370 200 June nventory 600 2,220 1,400 $5 12 Purchase 23 Purchase 0Inventory 230