U Save More Center began operations on July 1. It uses a perpetual inventory system. During July the company had the following purchases and sales.
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Purchases |
|||
|
Date |
Units |
Unit Cost |
Sales Units |
|
July 1 |
6 |
$47 |
|
|
July 6 |
4 |
||
|
July 11 |
5 |
$51 |
|
|
July 14 |
3 |
||
|
July 21 |
3 |
$54 |
|
|
July 27 |
2 |
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Instructions
(a) Determine the ending inventory under a perpetual inventory system using (1) FIFO,
(2) Average cost, and (3) LIFO.
(b) Which costing method produces the highest ending inventory valuation?