Inventory data for Jeters Company are presented in E6-7.

Instructions

(a) Calculate the cost of the ending inventory 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. (Note: For the moving-average method, round unit cost to three decimal places.)

(b) How do the results differ from E6-7?

(c) Why is the average unit cost not $6 [($5 + $6 + $7) + 3 = $6]?