E6.7 (LO 2), AP Jeters Company uses a periodic inventory system and reports the following for the month of June. Date June 1 12 Explanation Inventory Purchase Purchase Inventory Units 120 370 200 230 23 30 Instructions a. Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Round weighted 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 unit cost is not $6 per the average-cost method. Compute inventory under FIFO, LIFO, and average-cost. E6.7 (LO 2), AP Jeters Company uses a periodic inventory system and reports the following for the month of June. Unit Total Units Cost Cost 120 $5 $ 600 370 6 2,220 200 7 1,400 230 Instructions a. Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Round weighted-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 unit cost is not $6 per the average-cost method. Compute inventory under FIFO, LIFO, and average-cost