Beginning inventory, purchases, and sales for Item HM46 are as follows: January 1 Inventory 55 units @ $23 9 Sale 37 units 13 Purchase 48 units @ $27 25 Sale 22 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.

a. Cost of merchandise sold on January 25

b. Inventory on January 31