Compute the cost of the ending inventory

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Reference no: EM131148553

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?

Reference no: EM131148553

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