Perpetual Inventory Using FIFO

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

Oct. $1$ Inventory

$38$ units $(10$ $$24$

$7$ Sale

$27$ units

$15$ Purchase

$32$ units @ $$27$

$24$ Sale

$20$ units

Assuming a perpetual inventory system and using the first$-$in$,$ first$-$out $($FIFO$)$ method, determine $($a$)$ therost of the goods the inventory value 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 purchased. Think of your inv Determine how much inventory remains from each layer after each sale.

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