Essay
Plato Company reports the following for the month of June. ![Plato Company reports the following for the month of June. Instructions (a) Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 570 units occurred on June 15 for a selling price of $8 and a sale of 600 units on June 27 for $9. (Note: For the average-cost method, round unit cost to three decimal places.) (b) Why is the average unit cost not $6 [($5 + $6 + $7) / 3 = $6]?](https://d2lvgg3v3hfg70.cloudfront.net/TB4437/11eb232e_d402_9990_aa27_5541aa00bf1d_TB4437_00.jpg)
Instructions
(a) Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 570 units occurred on June 15 for a selling price of $8 and a sale of 600 units on June 27 for $9. (Note: For the average-cost method, round unit cost to three decimal places.)
(b) Why is the average unit cost not $6 [($5 + $6 + $7) / 3 = $6]?
Correct Answer:
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Ending inventory: $1,950. Cost of goods...View Answer
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Correct Answer:
Verified
Ending inventory: $1,950. Cost of goods...View Answer
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Get Access to more Verified Answers free of charge
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