Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta 9 are as follows: Oct. 1 Inventory 61 units @ $24 7 Sale 45 units 15 Purchase 39 units @ $26 24 Sale 24 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of goods sold on October 24 and (b) the inventory on October 31. a. Cost of goods sold on October 24 790 X b. Inventory on October 31 1,464 X 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 purchased. Think of your inventory in terms of "layers". Determine how much inventory remains from each layer after each sale, b. The ending inventory is made up of the most recent purchases