Question: Buffet Appliance Mart began operations on May 1. It uses a perpetual inventory system. During May, the company had the following purchases and sales for

Buffet Appliance Mart began operations on May 1. It uses a perpetual inventory system. During May, the company had the following purchases and sales for its Model 25 Sureshot camera.

Instructions
(a) Determine the ending inventory under a perpetual inventory system using
(1) FIFO,
(2) Moving-average cost,
(3) LIFO.
(b) Which costing method produces?
(1) The highest ending inventory valuation
(2) The lowest ending inventoryvaluation?

Purchases Date Units Unit CostSales Units $150 $170 $185 May 1 4 12 15 20 25

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a 1 FIFO Date Purchases Cost of Goods Sold Balance May 1 7 150 1050 7 150 1050 4 4 150 600 3 150 450 ... View full answer

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