Inventory data for Army & Navy Wear Co. are provided below. Sales for the quarter were 220 units sold for $12 each

Date Number of Units Unit Cost Total Cost
Jan. 01 Beginning inventory 150 $5.00 $ 750
Jan. 15 Purchase 70 $6.00 $ 420
Feb. 01 Sale 100
Feb. 20 Purchase 180 $7.00 $1,260
March 05 Sale 120
March 19 Purchase 50 $7.50 $ 375

Required:
1. Calculate the cost of goods sold for the quarter assuming the company uses a FIFO perpetual inventory system.
2. Calculate the cost of goods sold for the quarter assuming the company uses a LIFO perpetual inventory system.
3. Which system (perpetual or periodic) do you think is increasing in use because of computer technology?

1. FIFO COGS: $1,170 = (100 x $5) + ((50 x $5) + (70 x $6)
2. LIFO COGS: $1,410 = ((70 x $6) + (30 x $5)) + (120 x $7)
3. The perpetual system is increasing in use because computers make it less labor intensive to keep inventory records.