Inventory costing methods LO₃The purchases and issues of rubber gaskets (Stores Ledger #11216) as shown in the records of Jeter Corporation for the month of November follow:

Required:
1. Complete a stores ledger card similar to Figure 2-7 (the "on order"
columns may be omitted) for each of the following inventory costing methods, using a perpetual inventory system:

a. FIFO

b. LIFO

c. Moving average (carrying unit prices to five decimal places)
2. For each method, prepare a schedule that shows the total cost of materials transferred to Work in Process and cost of the ending inventory.
3. If prices continue to increase, would you favor adopting the FIFO or LIFO method? Explain.
4. When prices continue to rise, what is the effect of FIFO versus LIFO on the inventory balance reported in the balance sheet? Discuss.

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Units Unit Price Nov. 1 Beginning balance... 30,000 $3.00 4 Received, Rec. Report No. 112... 10,000 3.10 5 Issued, Mat. Req. No. 49. 30,000 8 Received, Rec. Report No. 113...... 50,000 3.30 15 Issued, Mat. Req. No. 50. 20,000 22 Received. Rec. Report No. 114. 25,000 3.50 28 Issued. Mat. Req. No. 51..... 30,000