Exercise 4: Inventory Valuation in a Perpetual Inventory System Part A: Explain conceptually how to compute the cost of goods sold and remaining inventory under each of the following assumptions: 1) FIFO costing in a perpetual inventory system 2) LIFO costing in a perpetual inventory system 3) Average costing in a perpetual inventory syster The Wright Company recorded the following inventory information during the month of October UNIT COST TOTAL UNITS COST 2,000 1,200 1 500 $1.00 $3.00 $2,000 $3,600 Balance on October 1 Purchased on October 8 Sold on October 20 Purchased on October 22 Sold on October 28 Purchase on October 29 UNITS ON HAND 2.000 3,200 1.700 3,700 1,500 2.500 2.000 $4.00 $8,000 2,200 1.000 $5.00 $5,000