Ramos Co. began operations on July 1. It uses a perpetual inventory system. During July the company had the following purchases and sales.

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 the highest ending inventory valuation?

Transcribed Image Text:

Purchases Date July 1 Units Unit Cost Sales Units 4 $ 90 July 6 3 July 11 5 $ 99 July 14 2 July 21 3 $106 July 27