In June, Dakota Company reports the following for the month of June:

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(a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO.

(b) Which costing method gives the higher ending inventory? Why?

(c) Which method results in the higher cost of goods sold? Why?

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Date Explanation Units Unit Cost Total Cost June 1 Inventory 200 $5 $1,000 12 Purchase 300 23 Purchase 500 19 6 1,800 7 3,500 30 Inventory 180