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

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]? 

Data from E 6.7

Jeters Company uses a periodic inventory system and reports the following for the month of June. 

Transcribed Image Text:

Date Explanation Units Unit Cost Total Cost $ 600 Inventory Purchase June 1 120 $5 12 370 6 2,220 23 Purchase 200 7 1,400 30 Inventory 230