Terando Co. 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 |
|
July1 July 6 |
5 |
$120 |
4 |
|
July 11 |
7 |
$136 |
|
|
July 14 |
3 |
||
|
July 21 |
8 |
$147 |
|
|
July 27 |
6 |
||
Instructions
(a) Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving average cost, and (3) LIFO.
(b) Which costing method produces the highest ending inventory valuation?