QUESTION 6 - Accounting for Inventory Pento's business uses FIFO and a perpetual inventory system to record its inventory of bottles of orange juice. The following information summarises the inventory movements for the first week of December for the bottles of orange juice: Required (a) Prepare an inventory record showing the above transactions using an inventory card. Use the following to help you draw up an inventory card in the exam. (b) Calculate the cost of sales expense at the end of the first week of December. (2 marks) (c) Why is it important for a business to know how much inventory is still on hand? What are the advantages of using a perpetual inventory system (so the business records all changes in inventory as soon as they happen)? (4 marks)