Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Oct

Accounting Aug 06, 2020

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 72 units @ $25 7 Sale 53 units 15 Purchase 70 units @ $29 24 Sale 23 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a)the cost of goods so 24 and (b) the inventory on October 31. a. Cost of goods sold on October 24 b. Inventory on October 31 Newt

Expert Solution

a. Total units sold = 53+23 = 76 units

Particulars	No. of Units	Cost per unit	Total Value
Beginning Inventory (72-53)	19	$25	$475
Purchase (23-19 units)	4	$29	$116
Cost of goods sold on october 24	$591

Particulars	No. of Units	Cost per unit	Total Value
Ending units Inventory (72+70-53-23)	66	$29	$1,914
Ending inventory on october 31	$1,914

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