E6-6

E6-6 Compute inventory and cost of goods sold using FIFO and LIFO. (SO 2, 3), AP Flanagan Company reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 200 $5 $1,000 12 Purchase 300 6 1,800 23 Purchase 500 3,500 30 Inventory 120 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