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

July 1		Inventory	80 units @ $32
5		Sale	64 units
11		Purchase	89 units @ $35
21		Sale	75 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on July 21 and (b) the inventory on July 31.

a. Cost of merchandise sold on July 21	$ 2625
b. Inventory on July 31