A.

Beginning inventory, purchases, and sales for Item ER27 are as follows:

May 1		Inventory	35 units @ $18
9		Sale	28 units
13		Purchase	29 units @ $20
25		Sale	12 units

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on May 25 and (b) the inventory on May 31.

a. Cost of merchandise sold on May 25	$fill in the blank 1
b. Inventory on May 31	$fill in the blank 2

B.

Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales for Item ER27 are as follows:

October 1		Inventory	108 units @ $33
5		Sale	86 units
11		Purchase	120 units @ $36
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 October 21 and (b) the inventory on October 31.

a. Cost of merchandise sold on October 21	$fill in the blank 1
b. Inventory on October 31	$fill in the blank 2