Perpetual inventory valuation Consolidated Spacecraft Company uses a special radioac- tive alloy in one of its new manufacturing processes. After one month of operation the controller asked the company president which inventory valuation method should be used for this raw material. The president noted that the price of the material has been rising rapidly, and asked the controller to prepare a schedule using several valuation methods for comparison, prior to settling on a single method.

The company uses a perpetual inventory system for all its raw materials. Following is a record of the number of grams of alloy purchased and put into production during March.

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Unit Grams Cost Mar. 1 Purchased 450 $ 90 6 Issued 220 13 Purchased 200 94 16 Purchased 300 95 19 Issued 400 25 Purchased 350 98 30 Issued 380 31 Purchased 200 100