U-Save-More Center 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 inventoryvaluation?

Transcribed Image Text:

Purchases Units U Cost Sales Units Date July 1 July 6 July 11 July 14 July 21 July 27 $47 $51 $54 6 4