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Question: Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales for Item ER27 are as follows:
January 1 Inventory 108 units @ $24
5 Sale 86 units
11 Purchase 120 units @ $28
21 Sale 101 units
Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine
(a) the cost of merchandise sold on January 21 and
(b) the inventory on January 31.
a. Cost of merchandise sold on January 21 $
b. Inventory on January 31
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