Beginning inventory, purchases, and sales for an inventory item are as follows: Assuming a perpetual inventory system and the first-in, first-out method, determine (a) the cost of the goods sold for the September 30 sale and (b) the inventory on September 30.

Perpetual Inventory System

An inventory management system where updates are made continuously as transactions occur.

First-In, First-Out

An inventory valuation method where the oldest items are sold or used first.

Cost of Goods Sold

An accounting term that refers to the direct expenses related to the production of goods sold by a business, including materials and labor.