owsham Ltd. reports the following for the month of June. Date June 1 12 23 30 Explanation Units Unit Cost Inventory 200 E5 Purchase 300 Purchase 500 Inventory 160 Periodic Inventory System The cost of the ending inventory The cost of goods sold Perpetual Inventory System 6 7 Total Cost €1,000 1,800 3.500 FIFO AVERAGE-COST £1,120 €5,180 €1.008 £5,292

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Howsham Ltd. reports the following for the month of June.
Date
Explanation Units Unit Cost
June 1
Inventory
200
E5
12
Purchase
300
6
23
Purchase
500
7
30 Inventory
160
Periodic Inventory System
The cost of the ending inventory
The cost of goods sold
Perpetual Inventory System
The cost of the ending inventory
The cost of goods sold
$
4 S
4
FIFO
€1,120
£5,180
t
FIFO
£1,120
£5,180
eTextbook and Media
Total Cost
Indicate how the results differ between the two inventory systems?
€1.000
1.800
3,500
B / VT, TI = = = JE
AVERAGE-COST
£1,008
£5,292
MOVING-AVERAGE COST
£1,083
€5,217
Why is the average unit cost not £6 ((E5+£6+ £7)+3-£6]?
Oword(s)
Transcribed Image Text:Howsham Ltd. reports the following for the month of June. Date Explanation Units Unit Cost June 1 Inventory 200 E5 12 Purchase 300 6 23 Purchase 500 7 30 Inventory 160 Periodic Inventory System The cost of the ending inventory The cost of goods sold Perpetual Inventory System The cost of the ending inventory The cost of goods sold $ 4 S 4 FIFO €1,120 £5,180 t FIFO £1,120 £5,180 eTextbook and Media Total Cost Indicate how the results differ between the two inventory systems? €1.000 1.800 3,500 B / VT, TI = = = JE AVERAGE-COST £1,008 £5,292 MOVING-AVERAGE COST £1,083 €5,217 Why is the average unit cost not £6 ((E5+£6+ £7)+3-£6]? Oword(s)
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