Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales for Item PK95 are as follows:

August 1		Inventory	80 units @ $15
9		Sale	67 units
13		Purchase	53 units @ $17
28		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 August 28 and (b) the inventory on August 31.

a. Cost of merchandise sold on August 28	$
b. Inventory on August 31	$