Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales for Item Zeta$9$ are as follows:

Oct. $1$ Inventory

$7$ Sale

$15$ Purchase

$24$ Sale

$45$ units@$$23$

$35$ units

$40$ units@ $$25$

$16$ units

Assuming a perpetual inventory system and using the first$-$in$,$ first$-$out $($FIFO$)$ method, determine $($a$)$ the on October $31.$

a$.$ Cost of the goods sold on October $24$

b$.$ Inventory value on October $31$

Feedback

Check My Work

a$.$ When the FIFO method is used, costs are included in cost of goods sold in the order in which they were purchas inventory remains from each layer after each sale.

b$.$ The ending inventory is made up of the most recent purchases