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Q. FIFO under perpetual inventory procedure?
FIFO under perpetual inventory procedure in perpetual inventory procedure the ending balance in the Merchandise Inventory account reflects the most current purchases as a result of making the required entries during the period. As well the firm has already recorded the cost of goods sold in the Cost of Goods Sold account. Exhibit illustrates how to determine the cost of ending inventory under FIFO using perpetual inventory procedure. This graphic uses the same format as the earlier perpetual inventory record in Exhibit. The company sustains a record of the balance in the inventory account as it makes purchases and sells items from inventory.
RATIO ANALYSIS
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