Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales for Item Zeta$9$ are as follows:

$\backslash$table$[[$Oct$.1,$Inventory,$36$ units @ $$19],[7,$Sale,$28$ units$],[15,$Purchase,$33$ units @ $$21],[24,$Sale,$13$ units$]]$

Assuming a perpetual inventory system and using the first$-$in$,$ first$-$out $($FIFO$)$ method, determine $($a$)$ the cost of the goods sold on October $24$ and $($b$)$ the in October $31.$

a$.$ Cost of the goods sold on October $24$

b$.$ Inventory value on October $31$

Feedback

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 mi inventory remains from each layer after each sale.

b$.$ The ending inventory is made up of the most recent purchases.