E6-8 Inventory data for Yount Company are presented in E6-6.

Price: $1.99


Yount Company reports the following for the month of June.

		Units	Unit Cost	Total Cost
1-Jun	Inventory	200	$5	$1,000
12	Purchase	300	6	$1,800
23	Purchase	500	7	$3,500
30	Inventory	120

Instructions
(a) Compute the cost of the ending inventory and the cost of goods sold using the average-cost
method.
(b) Will the results in (a) be higher or lower than the results under (1) FIFO and (2) LIFO?
(c) Why is the average unit cost not $6?