Cont'd $...$ E$6\mathrm{.}16($LO $2)$ Apply Cost Flow methods to Perpetual inventory system

Moving$-$average costs method

Workings: To calculate the cost per unit:

Sep$-1$ Given $=970$ per unit

Sep$-5\frac{\text{\$}22,310-\text{\$}11,640}{23-12}=$$$10,\frac{670}{11}=970$ per unit

Sep$-12\frac{\text{\$}10,670+\text{\$}45,900}{11+45}=$$$56,\frac{570}{56}=1,010\mathrm{.}18$

Sep$-16\frac{\text{\$}56,570-\text{\$}50,509}{56-50}=$$$6,\frac{061}{6}=1,010\mathrm{.}18$

Sep$-19\frac{\text{\$}6,061+\text{\$}20,800}{6+20}=$$$26,\frac{861}{26}=1,033\mathrm{.}12$

Sep$-26\frac{\text{\$}26,861+\text{\$}46,200}{26+44}=$$$73,\frac{061}{70}=1,043\mathrm{.}73$

Sep$-29\frac{\text{\$}73,061-\text{\$}61,580}{70-59}=$$$11,\frac{481}{11}=1,043\mathrm{.}73$

b$.$ Which costing method produces $(1)$ the higher ending inventory valuation and $(2)$ the

lower ending inventory valuation?

Ans: $(1)$ The higher ending inventory is $$11,550$ under the FIFO method.

$(2)$ The lower ending inventory is $$11,481$ under the moving$-$average method.