Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta? are as follows Oct. 1 Inventory 45 units $17 7 Sale 32 units 15 24 Purchase Sale 33 units $20 18 units Assuming a perpetual inventory system and using the first in, first-out (FIFO) method, determine (a) the cost of goods sold on October 24 and (b) the inventory on October 31. a. Cost of goods sold on October 24 b. Inventory on October 31 Foodack Ok My W a. When the FFO method is used, costs are included in cost of goods sold in the order in which they were purchased Think of your inventory in terms of "layers" Determine how much inventory remains hom each layer after a b. The ending inventory is made up of the most recent purchases