Premier Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.
|
Date |
Units |
Unit Cost |
Sales Units |
|
Jul-01 |
7 |
$62 |
|
|
Jul-06 |
5 |
||
|
Jul-11 |
3 |
$66 |
|
|
Jul-14 |
3 |
||
|
Jul-21 |
4 |
$71 |
|
|
Jul-27 |
3 |
Instructions
(a) Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average (round unit cost to three decimal places), and (3) LIFO.
(b) Which costing method produces the highest ending inventory valuation?