Moath Company reports the following for the month of June. Instructions (a) Calculate the cost of the

Question:

Moath 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 440 units occurred on June 15 for a selling price of $8 and a sale of 360 units on June 27 for $9.

(b) How do the results differ from E6-6 and E6-8?

(c) Why is the average unit cost not $6 [($5 + $6 + $7) ÷ 3 = $6]?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Fantastic news! We've located the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Accounting Principles

ISBN: 978-1118875056

12th edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

Question Posted: