Perpetual inventory using FIFO

Beginning inventory, purchases, and sales for Item Zeta9 are as follows:

Date	Line Item Description	Value
Oct. 1	Inventory	64 units @ $17
Oct. 7	Sale	49 units
Oct. 15	Purchase	44 units @ $19
Oct. 24	Sale	21 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 fill in the blank 1 of 2 b. Inventory on October 31 fill in the blank 2 of 2

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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.