Chapter 6, Problem 3CP

To determine

Concept Introduction:

FIFO- Perpetual inventory System: FIFO (First in first out) method assumes the flow of inventory in the same order of its purchase. In other words, the oldest purchase is assumed to be sold first in order of purchases made. The FIFO method can be applied using perpetual or periodic method. In the perpetual inventory method, the inventory balance is updated after each inventory transaction.

Recording of business transactions: Business transactions are recorded in the form of journal entries, using double entry system. In the double entry system each transaction affects at least two accounts. One or more account is debited and one or more accounts are credited for a transaction.

To record: The given business transactions in general journal