PE 7-2A Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Prox2 are as follows: OBJ. 3 Jan. 1 Inventory 60 units at $100 Sale Purchase50 units at $110 Sale 35 units 25 48 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, de- termine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31. Example Exercise 7-2 Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item ER27 are as follows Dynamic Exhibit Nov. Inventory 5 Sale 11 Purchase 70 units at $7 40 units at $5 30 units 21 Sale 36 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on November 21 and (b) the inventory on November 30. Follow My Example 7-2 a, Cost of merchandise sold (November 21) b. Inventory, November 30: 10 units at $5 50 $308 (44 units x$7) 26 units at $7 182 36 units $232 Practice Exercises: PE 7-2A, PE 7-2B