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lowing for the month of June  DATE        EXPLAINATION     UNITS    UNIT COST     TOTAL COST June 1       Inventory                  120                $5                  $600 12              Purchase                  370               $6                   $2220 23              Purchase                  200                $7                  $1400 30.             Inventory.                  230   How do the average-cost values for ending inventory and cost of goods sold relate to ending inventory and cost of goods sold for FIFO and LIFO?

lowing for the month of June  DATE        EXPLAINATION     UNITS    UNIT COST     TOTAL COST June 1       Inventory                  120                $5                  $600 12              Purchase                  370               $6                   $2220 23              Purchase                  200                $7                  $1400 30.             Inventory.                  230   How do the average-cost values for ending inventory and cost of goods sold relate to ending inventory and cost of goods sold for FIFO and LIFO?

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...
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Jesters company uses a periodic inventory system and reports the following for the month of June 

DATE        EXPLAINATION     UNITS    UNIT COST     TOTAL COST

June 1       Inventory                  120                $5                  $600

12              Purchase                  370               $6                   $2220

23              Purchase                  200                $7                  $1400

30.             Inventory.                  230

 

How do the average-cost values for ending inventory and cost of goods sold relate to ending inventory and cost of goods sold for FIFO and LIFO?

 

Explain why the average cost is not $6

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