Ying Co. Ltd. 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 and
(2) moving-average cost.
(b) Which costing method produces the higher ending inventory valuation?

Transcribed Image Text:

Purchases lDani Units Unit Cost Sales Units July 1 July 6 July 11 July 14 July 21 July 27 HK$120 HK$136 HK$147 7