4.)

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 inventorys selling price is $10 per unit.

Transactions	Unit Cost			Units			Total Cost
Inventory, January 1	$	3.50			330		$	1,155
Sale, January 10					(240	)
Purchase, January 12		4.00			360			1,440
Sale, January 17					(190	)
Purchase, January 26		5.00			100			500

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.

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?

	Lower Cost of Goods Sold
	Higher Cost of Goods Sold