Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item ZetaQ are as follows: Oct. 1 Inventory 37 units @ $15 7 Sale 29 units 15 Purchase 36 units @ $17 24 Sale 17 units Assuming a perpetual inventory system and using the first-in, rst-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 X b. Inventory on October 31 > Feedback 7 V Check My Work a. When the FIFO 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 from each layer after each sale. b. The ending inventory is made up of the most recent purchases. Check My Work ( Previous Next )