1. Badar Company reports the following for the month of July.

Units Unit Cost Total Cost

July 1 Inventory 300 OMR 8 OMR 2,400

12 Purchase 400 9 3,600

23 Purchase 300 10 3,000

30 Inventory 150

Instructions:

1. 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?