Effects of change from perpetual to periodic inventory Frogmorton Fashions began the period with inventory costing $ XXXXXXXXXXDuring the period, $ XXXXXXXXXXof additional inventory was purchased. At...

Effects of change from perpetual to periodic inventory Frogmorton Fashions began the period with inventory costing $30 000. During the period, $125 000 of additional inventory was purchased. At the end of the period, a physical count showed that inventory costing $38 000 was on hand. The firm’s perpetual inventory system showed that inventory costing $114 000 had been sold during the period. The general manager says, ‘It’s a bother keeping track of our inventory the way we do – our perpetual system requires continuous attention to inventory costs. What if we just used the periodic method? What difference would it make?’ Give your reply.