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Fontana Co. began operations on July 1. It uses a perpetual inventory system. During July the company had the following purchases and sales.
Purchase
Date
Units
Unit Cost
Sales Units
July 1
5
$120
July 6
4
July 11
7
$136
July 14
3
July 21
8
$147
July 27
Instructions
(a) Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO.
(b) Which costing method produces the highest ending inventory valuation?
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