Determine ending inventory under a perpetual inventory system. Fontana Ltd began operations on 1 July. It...

 

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Determine ending inventory under a perpetual inventory system. Fontana Ltd began operations on 1 July. It uses a perpetual inventory system. During July the business had the following purchases and sales. Purchases Date Units Unit cost Sales units July 15 $95 6 3 11 4 $106 14 3 21 3 $112 27 Required (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 cost allocation to ending inventory? Determine ending inventory under a perpetual inventory system. Fontana Ltd began operations on 1 July. It uses a perpetual inventory system. During July the business had the following purchases and sales. Purchases Date Units Unit cost Sales units July 15 $95 6 3 11 4 $106 14 3 21 3 $112 27 Required (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 cost allocation to ending inventory?

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