E6-16 Yount Company reports the following for the month of June.

Date Explanation Units Unit Cost Total Cost June 1 Inventory 200 $5 $1,000 12 Purchase 300 6 1,800 23 Purchase 500 7 3,500 30 Inventory 120 Instructions

(a) Calculate the cost of the ending inventory and the cost of goods sold for each cost flow as¬

sumption, using a perpetual inventory system. Assume a sale of 400 units occurred on June 15 for a selling price of $8 and a sale of 480 units on June 27 for $9.

(b) How do the results differ from E6-6 and E6-8?

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