sonyag1979
Feb 21, 2007, 06:15 PM
It's me again!
I have another question to the same problem. In case someone else responds, I'll post the problem again.
June 1 inv
2005
1000
June 12 purch.
3006
1800
June 23 purch.
5007
3500
June 30 inv.
I need to compute the cost of the ending inventory and the cost of goods sold using the average cost method.
Will the results be higher or lower than the results under FIFO & LIFO? And why is the average unit cost not $6.00
Please explain how to get the answer and why it's that way.
Thanks in advance.
I have another question to the same problem. In case someone else responds, I'll post the problem again.
June 1 inv
2005
1000
June 12 purch.
3006
1800
June 23 purch.
5007
3500
June 30 inv.
I need to compute the cost of the ending inventory and the cost of goods sold using the average cost method.
Will the results be higher or lower than the results under FIFO & LIFO? And why is the average unit cost not $6.00
Please explain how to get the answer and why it's that way.
Thanks in advance.