Howsham Company, Ltd. reports the following for the month of June.

Instructions
(a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) average-cost.
(b) Which costing method gives the higher ending inventory? Why?
(c) Which method results in the higher cost of goods sold? Why?

Transcribed Image Text:

Units Unit Cost Total Cost JuneInventory 200 12 Purchase 300 23 Purchase 500 160 £5 (s £1,000 1,800 3,500 0 Inventory1