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P6-3A Milo Company

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P6-3A Milo Company had a beginning inventory of 400 units of Product Kimbo at a cost
of $8 per unit. During the year, purchases were:



Milo Company uses a periodic inventory system. Sales totaled 1,500 units

a) Determine the cost of goods available for sale.
(b) Calculate the weighted-average unit cost.
(c) Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the
cost of goods sold under the FIFO and LIFO methods.
(d) Which cost flow method results in (1) the lowest inventory amount for the balance sheet, and (2) the lowest cost of goods sold for the income statement?

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