=+Assume that the business in Exercise 7-5 maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.

The following units of a particular item were available for sale during the year:

Beginning inventory 150 units at $75 Sale 120 units at $125 First purchase 400 units at $78 Sale 200 units at $125 Second purchase 300 units at $80 Sale 290 units at $125 The firm uses the perpetual inventory system, and there are 240 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to

(a) FIFO,

(b) LIFO?

The units of an item available for sale during the year were as follows:

Jan. 1 Inventory 27 units at $120 Feb. 17 Purchase 54 units at $138 July 21 Purchase 63 units at $156 Nov. 23 Purchase 36 units at $165