PERPECTUAL METHOD

1.  Purchases of merchandise for sale or purchase of raw materials for production and not debited to Supplies to purchase. 
2. Transportation costs in, purchase returns and price reductions, as well as discounts for inventory purchases debited to the account and not separately. 
3. Cost of goods sold for each sale to admit I debiting Cost of Goods Sold and credit supply. 
4. Supplies a control account supported by a subsidiary ledger containing individual inventory records. 
5. Subsidiary ledger showing the quantity and cost of each type of inventory that is in the hands.