Lemansky 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.

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 ( 1 ) the highest ending inventory valuation and (2) the lowest ending inventory valuation?

Transcribed Image Text:

Purchases Date Units Unit Cost Sales Units May 1 7 $150 4 4 8 8 $170 12 15 $185 20 25 5