Dene Company uses a periodic inventory system and its accounting records include the following inventory information for the month of July:

A physical inventory count determined that 620 units were on hand at July 31.
Instructions
(a) Calculate the ending inventory and the cost of goods sold under
(1) FIFO and
(2) Weighted average.
(b) For item 2 of part (a), explain why the weighted average unit cost is not $6.25.
(c) How do the results for part (a) differ from E6 - 6, where the same information for Dene Company was used in a perpetual inventory system?

Transcribed Image Text:

July 1 12 20 28 Inventory on hand Purchase Sale Purchase Units 150 230 (250) Unit Cost $5.00 6.75 Total Cost 750.00 1,552.50 490 7.00 3,430.00 July 1 12 20 28 Inventory Purchases Sale Purchases Units 150 230 (250) 490 Unit Cost $5 6.75 Total Cost 750 1,552.50 3,430