Chapter 8, Problem 1CMA

To determine

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

First-in-First-Out (FIFO):

In First-in-First-Out method, the costs of initial purchased items are sold first. The value of the ending inventory consist the recent purchased items.

To identify: The correct reported inventory in balance sheet at December 31, 2016 from the given option.