Using the information in CP7-1, calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. Com-pare these amounts to the periodic LIFO calculations in requirement 1 a of CP7-1. Does the use of a perpetual inventory system result in a higher or lower Cost of Goods Sold when costs are rising?

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Iransaction Units Unit Cost Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($46 each) c. Purchase on account, June 30 d. Cash sale. August 1 ($46 each) 200 $30 300 (350) 250 (50) 32 36