1-b.

Does the use of a perpetual inventory system result in a higher or lower cost of goods sold than the periodic inventory system when costs are rising?

	Higher Cost of Goods Sold
	Lower Cost of Goods Sold

Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the time of each sale, as if it uses a perpetual inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31. The inventory's selling price is $9 per unit. T Unit Cost Units Transactions Total Cost $2.50 775 Inventory, January 1 310 Sale, January 10 (230) 3.00 Purchase, January 12 345 1.035 Sale, January 1 380 4.00 Purchase, January 26 95 Required: 1-a. Calculate the cost of goods sold and ending inventory for Mojo Industries assuming it applies the LIFO cost method perpetually at the time of each sale. Ending Inventory Cost of Goods Sold