Perpetual Inventory Using FIFO

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

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 inventory value on October $31.$

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

b$.$ Inventory value on October $31$

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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.