12 5 eBook Show Me How Perpetual Inventory Using UFO Beginning inventory, purchases, and sales for Item HM46 are as follows: January 1 Inventory 106 units $15 Sale 85 units Purchase 21 Sale 99 units Assuming a perpetual inventory system and using the last in, first-out (uro) 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 11 118 units $18