-Chapter 6 Do In Class Handout Merchandise Inventory 1. What are the accounting principles and controls that relate to merchandise inventory? a) Give a brief definition of the following ) Consistency Principle- i) Disclosure Principle - iii) Materiality Concept- iv) Conservatism - 2. How are merchandise inventory costs determined under a perpetual inventory system? Use the following information to answer the next 2 questions: Beginning Inventory January 1st 100 units x $10-$1,000 Purchases on January 15th 100 units x S12 $1,200 Using the perpetual system and FIFO method, what is the Cost of Goods Sold if we sell 125 units on January 20h? Please show work a) b) Using the perpetual system and LIFO method, what is the Cost of Goods Sold if we sell 125 units on January 20th? Please show work