Blue Ltd. uses the perpetual inventory system and reports the following inventory transactions for the month of June: Date Units Total Cost Explanation Beginning inventory Unit Cost/Price $5 June 1 1,380 $6,900 12 Purchases 2,460 6 14,760 15 Sale (2,450) 12 16 Purchases 4,170 7 29,190 23 Purchases 1.430 8 11,440 27 Sales (5,460) 15 (a) Determine the cost of goods sold and the cost of the ending inventory using (1) FIFO and (2) Average cost. (Round average cost per unit and answers to 2 decimal places, e.g. 1.25.) FIFO Average Cost of goods sold $ $ Cost of ending inventory $ $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Part 2 Which cost formula results in the higher cost of goods sold? Why? Thi cost formula results in a cost of goods sold because the cost of inventory is average FIFO Part 3 Which cost formula results in the higher net income? Why? The cost method formula in a profit because it produces the cost of goods sold when prices art rising faling eTextbook and Media Attempts: 0 of 3 used Save for Later Check Answer Part 4 Which cost formula results in the higher ending inventory? Why? The cost formula results in a ending inventory because the cost of inventory is Part 5 Which cost formula results in the higher cash flow? Why? the pre-tax cash flows of a company. cost formula result in the same pre-tax cash flow. The cost methods Average FIFO Both e Textbook and Media