Inventory data for Moath Company are presented in exercise.

In Exercise,

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 Cost Total Cost $5 $1,000 2,400 2,100 June 1 Inventory Purchase 200 12 400 6. 23 Purchase 300 7 30 Inventory 100