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Farman 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, and (3) LIFO.
(b) Which costing method produces (1) the highest ending inventory valuation and (2) the lowest ending inventoryvaluation?
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