E6-6 Solution - E6-6 Yount Company reports the following...

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E6-6Yount Company reports the following for the month of June: DateExplanationUnitsUnitCostTotal CostJune 1 Inventory200$5$1,000June 12Purchases30061,800June 23Purchases50073,500June 30Inventory120Your answer is correct. Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO. FIFOLIFOEnding Inventory$$Cost of goods sold$$ExplanationFIFOBeginning inventory (200 × $5)$1,000PurchasesJune 12 (300 × $6)$1,800June 23 (500 × $7)3,5005,300Cost of goods available for sale6,300Less: Ending inventory (120 × $7)840Cost of goods sold$5,460LIFOCost of goods available for sale$6,300Less: Ending inventory (120 × $5)600Cost of goods sold$5,700Your answer is correct.
Which method gives the highest ending inventory?

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