Inventory data for Moath Company are presented in E6.7. Instructions a. Compute the cost of the ending

Question:

Inventory data for Moath Company are presented in E6.7.

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?

E6.7

Ballas Co. uses a periodic inventory system. Its records show the following for the month of May, in which 68 units were sold.

Units Unit Cost Total Cost May 1 $ 8 $240 Inventory Purchases Purchases 30 15 25 11 275 24 35 12 420 Totals 90 $935

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Accounting Principles

ISBN: 978-1119411482

13th edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Question Posted: Jul 16, 2020 02:24 AM

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Inventory data for Moath Company are presented in E6.7. Instructions a. Compute the cost of the ending

Question:

Units Unit Cost Total Cost May 1 $ 8 $240 Inventory Purchases Purchases 30 15 25 11 275 24 35 12 420 Totals 90 $935

Step by Step Answer:

A averagecost 93590 1039 qty of ending inventory 9...View the full answer

Accounting Principles

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