Exercise 1. Cost of goods sold Music and More had inventory of guitars and other musical instruments. Using the FIFO Chethod and the perpetual inventory system, the company posted initial inventory, purchases, and sales. Determines the cost of merchandise sold and the value of the inventory. date detail quantity Unit cost May 1 Initial inventory 10 $91 6 sale 6 8 purchase 14 95 13 sale 4 30 sale 7