E6-6. Kaleta Company reports the following for the month of June.

Units Unit cost Total Cost

June 1 Inventory 200 $5 $1,000

June 12 Purchase 400 6 2,400

June 23 Purchase 300 7 2,100

June 30 Inventory 100

Instructions

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

Which costing method gives the higher ending inventory? Why?

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