Fontana Co. began operations on July 1. It uses a perpetual inventory system. During July the company had the following purchases and sales.
|
Purchase
|
|
|
|
Date
|
Units
|
Unit Cost
|
Sales Units
|
|
July 1
|
5
|
$120
|
|
|
July 6
|
|
|
4
|
|
July 11
|
7
|
$136
|
|
|
July 14
|
|
|
3
|
|
July 21
|
8
|
$147
|
|
|
July 27
|
|
|
|
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?