During the year, TRC Corporation has the following inventory transactions: purchases of 1,000 units, sales of 800 units, and a beginning inventory of 200 units. Under the perpetual inventory system, how is the Cost of Goods Sold (COGS) determined?

Step 1: Understand the perpetual inventory system. In this system, inventory records are updated continuously after each transaction, including purchases and sales. This means that the Cost of Goods Sold (COGS) is updated immediately after each sale.