Shiraz Rugs began operations on February 1. It uses a perpetual inventory system.

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

Purchases Date Units Unit Cost Sales Units Feb. 1 12 $150 Feb. 6 9 Feb. 11 8 $168 Feb. 14 5 Feb. 21 6 $182 Feb. 27 4 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