Lakshmi Ltd reports the following inventory transactions

in a periodic #8595
Lakshmi Ltd reports the following inventory transactions in a periodic

Lakshmi Ltd. reports the following inventory transactions in a periodic inventory system for the
month of June. A physical inventory count determined that 1,600 units were on hand at the end
of the month.

Instructions

(a) Determine the cost of the ending inventory and cost of goods sold using (1) FIFO and (2)
average cost. (For average cost, use unrounded numbers in your calculations but round to the
nearest cent for presentation purposes in your answer.)

(b) For item 2 of part (a), explain why the average unit cost is not

$6.50[($5+$6+$7+$8)÷4]

$6.50 [($5+$6+$7+$8)÷4].

(c) By how much do the results for part (a) differ from E6.6, where the same information was
used in a perpetual inventory system? Why?

Lakshmi Ltd reports the following inventory transactions in a periodic

ANSWER
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