Sandoval Appliance Mart began operations on May 1. It uses a perpetual inventory system.
During May the company had the following purchases and sales for its Model 25 Sureshot camera.
|
Date |
Units |
Unit Cost |
Sales Units |
|
May 1 |
7 |
$150 |
|
|
4 |
4 |
||
|
8 |
8 |
$170 |
|
|
12 |
5 |
||
|
15 |
6 |
$185 |
|
|
20 |
3 |
||
|
25 |
4 |
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 (1) the highest ending inventory valuation and (2) the lowest ending inventory valuation?