Exercise 6-7

Bramble Corp. uses the periodic inventory system and reports the following for the month of June.

				Units			Unit Cost			Total Cost
June 1		Inventory		264			$5			$ 1,320
12		Purchase		528			7			3,696
23		Purchase		396			11			4,356
30		Inventory		132

a. Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO.

b. Which costing method gives the higher ending inventory?

c. Which method results in the higher cost of goods sold?