Purchases Date Units Unit Cost Sales Units Average cost for each unit FIFO MOVING-AVERAGE LIFO Solution average unit costs: July 1 - 120 July 6 -120 July 11- 134 July 14 - 134 july 21- 142.6 July- 142.6 ending value of inventory under FIFO= $23,040 moving average= $30,660 LIFO= $23,384 .

1. Purchases
Date
Units
Unit Cost
Sales Units
Average cost for each unit
FIFO
MOVING-AVERAGE
LIFO
Terando Co. began operations on July 1. It uses a perpetual inventory system. During
July, the company had the following purchases and sales.
Purchases
Date Units Unit Cost
Sales
Units
July 1 120 $120
July 6 96
July 11 168 $136
July 14 72
July 21 192 $148
July 27 144
Solution
average unit costs:

2. July 1 - 120
July 6 -120
July 11- 134
July 14 - 134
july 21- 142.6
July- 142.6
ending value of inventory
under FIFO= $23,040
moving average= $30,660
LIFO= $23,384