Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales for Item CZ83 are as follows:
| October 1 | Inventory | 108 units @ $17 | |
| 5 | Sale | 86 units | |
| 11 | Purchase | 120 units @ $20 | |
| 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 October 21 and (b) the inventory on October 31.
| a. Cost of merchandise sold on October 21 | $ |
| b. Inventory on October 31 | $ |