Tipp Topp Company Uses a Periodic Inventory System and Reports

Essay

Tipp Topp Company uses a periodic inventory system and reports the following for the month of June. $\begin{array}{rccr}&\text { Units }&\text { Unit Cost }&\text { Total Cost }\\\hline\text { June } 1 \text { Inventory } & 300 & \$ 5 & \$ 1,500 \\12 \text { Purchase } & 450 & 6 & 2,700 \\23 \text { Purchase } & 750 & 7.60 & 5,700 \\30 \text { Inventory } & 160 & &\end{array}$ Instructions
(a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO.
(b) Compute the cost of the ending inventory and the cost of goods sold using the average-cost method.