Answer:
a 1) FIFO
Closing Inventory = $1,760
Cost of Goods sold = $11,264
2) LIFO
Closing Inventory = $1,056
Cost of Goods sold = $11,968
b) FIFO gives the higher ending inventory than LIFO because the oldest items and lowest costs are allocated to the cost of goods sold.
c) LIFO results in higher cost of Goods sold because latest cost are allocated to the cost of goods sold and latest cost may include price increases.
Explanation:
FIFO
Closing inventory = 176 units * $10= $1760
Cost goods sold = 352 units + 704+528 -176 =1,408 units sold
from opening $2,112
12 June = $5632
23 June = ( 528-176) =352 units * 10 =3,520
total sold = $11,264
LIFO
Closing inventory = 176 units * 6 = $1,056
Cost goods sold = 352 units + 704+528 -176 =1,408 units sold
23 June = $5,280
12 June = $5,632
1 June = (352-176) = 176 *6 = $1,056
Total = $11,968
