Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta 9 are as follows: Oct. 1 01 units $17 Inventory Sale 7 15 Purchase 51 units $19 24 Sale 25 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 ond (b) the inventory on October 31 a Cost of goods sold on October 24 b. Inventory on October 31 X 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 much inventoremains from each layer after each sale. b. The ending inventory is made up of the most recent purchases