Problem - Wittmann Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.
|
Date
|
Purchases
|
Sales Units
|
|
Units
|
Unit Cost
|
|
July 1
|
125
|
$122
|
|
|
July 6
|
|
|
75
|
|
July 11
|
175
|
$136
|
|
|
July 14
|
|
|
125
|
|
July 21
|
200
|
$147
|
|
|
July 27
|
|
|
125
|
Calculate the average cost per unit at July 1, 6, 11, 14, 21 & 27.
Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO.
Which costing method produces the highest ending inventory valuation?