Chapter 6, Problem 7CP

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.

Adjusted Trial balance: The adjusted trial balance contains the adjusted balance of ledgers. It has columns for debit and credit balances. The total of debit column should be same as the total of credit column. The trial balance proved the arithmetical accuracy of the records.

To prepare: The inventory summary for the given period