Perpetual Inventory Using FIFO

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

May 1		Inventory	44 units @ $24
9		Sale	36 units
13		Purchase	52 units @ $28
28		Sale	17 units

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on May 28 and (b) the inventory on May 31.

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