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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?
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