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.

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

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?