Required information Costs are assigned to the cost of Goods Sold account each time a sale occurs in a perpetual system. Specific identification assigns a cost to each item sold by referring to its actual cost (for example, its net invoice cost). Weighted average assigns a cost to items sold by dividing the current balance in the Inventory account by the total items available for sale to determine cost per unit. We then multiply the number of units sold by this cost per unit to get the cost of each sale. FIFO assigns cost to items sold assuming that the earliest units purchased are the first units sold. LIFO assigns cost to items sold assuming that the most recent units purchased are the first units sold. Unit Inve Date Activity Aug. 1 Beginning inventory.... Aug. 3 Purchases Aug. 14 Sales Aug. 17 Purchases Aug. 28 Purchases Aug. 30 Sales Totals Units Acquired at Cost Units Sold at Retail 10 units @ $ 91 - $ 910 15 units $106 $1,590 20 units $130 20 units @ $115 = $2,300 10 units $119 = $1,190 23 units $ 150 55 units $5,990 43 units 10 25 un Sun 25 un 35 un 12 un Knowledge Check 01 A company has beginning inventory of $20,000. purchases of $15,000, and ending inventory of $2,500. The cost of goods available for sale is of 12