Dollar Saver Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.
|
Purchases |
|||
|
Date |
Units |
Unit Cost |
Sales Units |
|
Jul-01 |
7 |
$47 |
|
|
Jul-06 |
3 |
||
|
Jul-11 |
5 |
$50 |
|
|
Jul-14 |
4 |
||
|
Jul-21 |
3 |
$54 |
|
|
Jul-27 |
2 |
||
Instructions
(a) Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average, and (3) LIFO. (Note:For moving-average, round cost per unit to three decimal places.)
(b) Which costing method produces the highest ending inventory valuation?