Plato Company Reports the Following for the Month of June

question 68

Essay

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]?

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Definitions:

Bronch/o

A combining form denoting relation to the bronchi, the major air passages of the lungs.

Laryng/o

A prefix related to the larynx or voice box, often used in medical terminology.

Cheyne-Stokes Respiration

A pattern of breathing characterized by a gradual increase in the depth of breaths followed by a decrease, resulting in temporarily stopped breathing, often seen in cases of heart failure or brain damage.

Rhinoplasty

A surgical procedure to change the shape of the nose for cosmetic reasons or to improve breathing.