Question
Terando Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Date: July
Terando Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.
Date:
July 1: 8 units $110 cost of units
July 6: 7 sales units
July 11: 12 units $126 cost of units
July 14: 5 sales units
July 21: 13 units $137 cost of units
July 27: 10 sales units
a) Calculate the average cost per unit at July 1, 6, 11, 14, 21, & 27.
b) Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO
c) Which costing method produces the highest ending inventory valuation?
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