Hassan Company reports the following for the month of June. UnitsUnit costTotal Cost June 1Inventory250$7$1,750 12Purchase325$8$2,60023Purchase475$9$4,27530Inventory130 Instructions:Compute the cost of the ending inventory and the cost of goods sold under (1)FIFO and (2)LIFO.(2 Mark for Each Method )Which costing method gives the higher ending inventory? Why?(1Marks )Solution: (1)FIFO (2) LIFO b)

Answered: Hassan Company reports the following…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...

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Hassan Company reports the following for the month of June.

		Units	Unit cost	Total Cost
June 1	Inventory	250	$7	$1,750
12	Purchase	325	$8	$2,600
23	Purchase	475	$9	$4,275
30	Inventory	130

Instructions:

Compute the cost of the ending inventory and the cost of goods sold under (1)FIFO and (2)LIFO.(2 Mark for Each Method )
Which costing method gives the higher ending inventory? Why?(1Marks )

Solution:

(1)FIFO







(2) LIFO






b)

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