Altres far Perpetual Inventory Using FIFO Beginning inventory. Durchases, and sales for Item PK95 are as follows: July Inventory 53 units $16 Sale 39 units 13 Purchase 57 units $17 25 Sale 23 units Assuming a perpetual inventory system and using the first in first-out (FIFO) method, determine (a) the cost of merchandise sold on July 25 and (b) the inventory on July 31 a. Cost of merchandise sold on July 25 X b. Inventory on July 31 Feet | 0 4 . awenthe FIFO method is used costs are included in cost of merchandise od inter in which they were purchase. Think of your inventory in terms of layers Determine how much inwestorysom eacher reach to. The ending inventory is made up of most recent purchases