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E6-17A (Learning Objective 2: Compare ending inventory and cost of goods sold by four methods) Use the data for Ontario, Inc., in Exercise 6-16A to

E6-17A

(Learning Objective 2: Compare ending inventory and cost of goods sold by four methods) Use the data for Ontario, Inc., in Exercise 6-16A to answer the following:

? Requirements

1. Compute cost of goods sold and ending inventory, using each of the following methods:

a. Specific unit cost, with three $155 units and five $165 units still on hand at the end

b. Average cost

c. First-in, first-out

d. Last-in, first-out

2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?

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