Lambert Center began operations on July 1. It uses a perpetual inventory system.

During July, the company had the following purchases and sales.

Purchases Date Units Unit Cost Sales Units July 1 7 $62 July 6 5 July 11 3 $66 July 14 3 July 21 4 $71 July 27 3 Instructions

(a) Determine the ending inventory under a perpetual inventory system using (1) FIFO,

(2) moving-average (round unit cost to three decimal places), and (3) LIFO.

(b) Which costing method produces the highest ending inventory valuation?

AppendixLO1