Moath Company reports the following for the month of June. Units Unit Cost

June 1 12 23 30

Instructions

Total Cost

$1,000 2,400 2,100

Compute inventory and cost of goods sold using FIFO and LIFO.

Inventory Purchase Purchase Inventory 100

200 $5 400 6 300 7 

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?