Content Area FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Line Item Description Units and Cost Beginning inventory 50 units at $49 Sale 42 units at $78 First purchase 20 units at $50 Sale 19 units at $79 Second purchase 26 units at $53 Sale 13 units at $80 The firm uses the perpetual inventory system, and there are 22 units of the item on hand at the end of the year