Inventory data for Kaleta Company are presented in E6-6. In E6-6, Kaleta Company reports the following for
Question:
In E6-6, Kaleta Company reports the following for the month of June.
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?
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Transcribed Image Text:
Units Unit Cost Total Cost 200 400 JunePurche 300 30 Inventory 100 JuneInventory 12 Purchase Purchase $1,000 2,400 2,100 S5 6
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a Cost of Goods Available for Sale 5500 Total Units Available for Sale 900 Weighted A...View the full answer
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Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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