Zambia Company 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) LIFO.

(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 June Inventory 200 $5 $1.000 12 Purchase 300 6 1.800 23 Purchase 500 3.500 30 Inventory 160