Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item ER27 are as follows: July 1 Inventory 5 Sale 98 units @ $29 78 units 109 units$31 92 units 11 Purchase 21 Sale Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on July 21 and (b) a. Cost of merchandise sold on July 21 b. Inventory on July 31 Cost of merchandise sold on July 21 2,812 1,147 X a. When the LIFO method is used, the cost of the units sold is the cost of the most recent purchases. Think of your inventory in terms of "Tayers Determine how m each layer after each sale. Check My Work b. The ending inventory is made up of the oldest purchases