Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta 9 are as follows: Oct. 1 Inventory Sale 70 units $24 55 units 7 15 Purchase 64 units $25 23 units 24 Sale 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 31 575 x Cost of goods sold on October 24 b. Inventory on October 31 Check My Won 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