Perpetual Inventory Using LIFO

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

January 1 Inventory 108 units @ $24

5 Sale 86 units

11 Purchase 120 units @ $28

21 Sale 101 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on January 21 and (b) the inventory on January 31.

a. Cost of merchandise sold on January 21 $

b. Inventory on January 31