Accounting › Section I · Inventory › Topic I.3
Cost of goods sold under the perpetual method
A perpetual system records the cost of every sale on the day it happens, so the inventory balance is always up to date. That changes the arithmetic for LIFO and for averages, because each sale can draw only on the units that were in stock at that moment.
In this topic
- Costing each sale as it happens
- Only what was on the shelf
- The data for this topic
- Worked example: perpetual FIFO
- Worked example: perpetual LIFO
- Moving average
- Worked example: moving average
- Recording a perpetual sale
- Common mistakes to avoid
- Key takeaways
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