AP Jeters Company uses a periodic inventory system and reports the following for the month of June.

a. Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Round average unit cost to three decimal places.)

b. Which costing method gives the highest ending inventory? The highest cost of goods sold? Why?

c. How do the average-cost values for ending inventory and cost of goods sold relate to ending inventory and cost of goods sold for FIFO and LIFO?

d. Explain why the average cost is not $6.

Date Explanation Units Unit cost Total cost June 1 Inventory 120 $5 $600 June 12 Purchase 370 $6 $2200 June 23 Purchase 200 $7 $1400 June 30 Inventory 230