Question

Perpetual Inventory Using FIFO 

Beginning inventory, purchases, and sales for Item Zeta9 are as follows: 

Oct. 1 Inventory 200 units at $30 

7 Sale 160 units 

15 Purchase 180 units at $33 

24 Sale 150 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 and (b) the inventory on October 31. 

a. Cost of goods sold on October 24

b. Inventory on October 31

Answer 1