Chapter 5, Problem 11DQ

To determine

Introduction:

The Perpetual inventory system of recording the inventory records includes the continuous updating of inventory records after each transaction of purchase of inventory and sales of inventory being made.

First in first out method implies that the goods received first have been issued first for the purpose of computing the cost of goods sold.

The last in first out method implies that the inventory which has been received most recently is issued first for the purpose of the cost of goods sold.

The cost of goods available for sale for Company S.