Lakshmi Ltd. reports the following inventory transactions in a periodic inventory system for the month of June. A physical inventory count determined that 1,600 units were on hand at the end of the month.

Instructions
(a) Determine the cost of the ending inventory and cost of goods sold using (1) FIFO and (2) average cost. (For average cost, use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)
(b) For item 2 of part (a), explain why the average unit cost is not
$6.50[($5+$6+$7+$8)÷4]
$6.50 [($5+$6+$7+$8)÷4].
(c) By how much do the results for part (a) differ from E6.6, where the same information was used in a perpetual inventory system? Why?

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Date Explanation Units Unit Cost Total Cost June 1 Beginning inventory 1,500 2,300 4,500 1,500 12 Purchases 16 Purchases 23 Purchases $5 7,500 6 13,80o 7 31,50o 8 12,000