Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: Oct. 1 Inventory 106 units @ $15 8 Sale 85 units 15 Purchase 118 units @ $19 27 Sale 99 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on Oct. 27 and (b) the inventory on Oct. 31. 1,881 a. Cost of goods sold on Oct. 27 b. Inventory on Oct. 31 Feedback Check My Work 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 "layer.Delum how much inventory remains from each layer after each sale. b. The ending inventory is made up of the oldest purchases. Learning Objective 3