Perpetual Inventory UsingFIFO

Beginning inventory, purchases, and sales for Item HM46 are as follows:

August 1Inventory53 units @ $179Sale42 units13Purchase39 units @ $2028Sale17 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