Question: Using the above information, explain to Amos why he should use perpetual inventory system for his business. Your friend Amos is running a trading business.

Using the above information, explain to Amos why he should use

Using the above information, explain to Amos why he should use perpetual inventory system for his business.

Your friend Amos is running a trading business. His company did not use the perpetual inventory system and he is considering whether he should switch to perpetual inventory system. He showed you the purchases and sales for his company in the last six months (Assume beginning inventory is zero). Units Unit Cost Purchases 1 January 8 February 10 March 1 May 15 June 400 @ $2,370 500 @ $2,350 600 @ $2,370 200 @ $2,380 200 @ $2,360 Sales January February March April May June 200 210 210 220 180 210

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