Chapter 8, Problem 8.14E

1.

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 cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.

In Weighted-Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Following is the mathematical representation:

$\text{Weighted-average Cost}=\frac{\text{Total Cost of Goods Available For Sale}}{\text{Total Number of Units Available For Sale}}$

To Prepare: The perpetual inventory schedule using FIFO method of inventory costing.

2.

To determine

To Prepare: The perpetual inventory schedule using LIFO method of inventory costing.

3.

To determine

To Prepare: The perpetual inventory schedule using weighted-average method of inventory costing.