Exercise 6-6 Kaleta Company uses a periodic system and reports the following for

Question

Exercise 6-6 Kaleta Company uses a periodic system and reports the following for the month of June. Units 220 440 330 Unit Cost $4 7 10 Total Cost $ 880 3,080 3,300 June 1 Inventory 12Purchase 23 Purchase 30 Inventory 110 Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO. FIFO LIFO Cost of the ending inventory Cost of goods sold LINK TO TEXT Which costing method gives the higher ending inventory? LINK TO TEXT Which method results in the higher cost of goods sold?

Explanation / Answer

1 Cost of ending inventory: FIFO 1100 =110*10 LIFO 440 =110*4 Cost of goods sold: FIFO 6160 =880+3080+3300-1100 LIFO 6820 =880+3080+3300-440 2 FIFO gives higher ending inventory 3 LIFO results in higher cost of goods sold

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.