### Inventory and Cost Accounting: FIFO and LIFO Methods#### Tamarisk, Inc. reports the following for the month of June.| Date | Description | Units | Unit Cost | Total Cost ||--------|-------------|-------|-----------|------------|| June 1 | Inventory | 364 | $4 | $1,456 || 12 | Purchase | 728 | $7 | $5,096 || 23 | Purchase | 546 | $11 | $6,006 || 30 | Inventory | 182 | | |#### Task:Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO.**For FIFO (First-In, First-Out) method:**- **Cost of the ending inventory:**- **Cost of goods sold:****For LIFO (Last-In, First-Out) method:**- **Cost of the ending inventory:**- **Cost of goods sold:**#### Instructions:1. Calculate the costs using the FIFO method, where the first items added to inventory are the first ones sold.2. Calculate the costs using the LIFO method, whereby the last items added to inventory are the first ones sold.*eTextbook and Media*#### Question:**Which costing method gives the higher ending inventory?**- [Dropdown menu to select the answer]---In this exercise, students are asked to compute and compare the cost of ending inventory and cost of goods sold using two different inventory costing methods, FIFO and LIFO. The data provided includes initial inventory, purchases throughout the month of June, and the ending inventory. By understanding both FIFO and LIFO methods, students will be able to see how different accounting methods affect the financial reporting of a company.

Name: ### Inventory and Cost Accounting: FIFO and LIFO Methods#### Tamarisk
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Description: ### Inventory and Cost Accounting: FIFO and LIFO Methods#### Tamarisk, Inc. reports the following for the month of June.| Date | Description | Units | Unit Cost | Total Cost ||--------|-------------|-------|-----------|------------|| June 1 | Inve

INTRODUCTION: The first items in the inventory are sold first under FIFO. Ending inventory will thus…

Business

Accounting

Tamarisk, Inc. reports the following for the month of June. June 1. Inventory 12 23 30 Purchase Purchase Units 364 728 Cost of goods sold 546 Inventory 182 Cost of the ending inventory $ e Textbook and Media Unit Cost $ $4 7 11 Total Cost Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO. $1,456 FIFO 5,096 6,006 Which costing method gives the higher ending inventory? $ $ LIFO

Tamarisk, Inc. reports the following for the month of June. June 1. Inventory 12 23 30 Purchase Purchase Units 364 728 Cost of goods sold 546 Inventory 182 Cost of the ending inventory $ e Textbook and Media Unit Cost $ $4 7 11 Total Cost Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO. $1,456 FIFO 5,096 6,006 Which costing method gives the higher ending inventory? $ $ LIFO

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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