Inventory data for Jeters Company are presented in E6.7.
Instructions
a. Calculate the cost of the 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.
