Inventory data for Kuchin Company are presented inE6-7.

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 340 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]?