Wittmann Co. began operations on July 1. It uses a perpetual inventory system During July

Wittmann Co. began operations on July 1. It uses a perpetual inventory system During July, the company had the following purchases and sales.

Instructions

Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO.
Which cost flow method produces the highest ending inventory valuation?

Solution

Wittmann Co.
FIFO Method
Ending Inventory

Moving-average cost Method
Ending Inventory

Wittmann Co.
FIFO Method
Ending Inventory

From the Solution (a), We can say that FIFO shows the highest ending inventory amount for the balance sheet

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Inventories

Problem-9: Inventories

Instructions

Solution

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