PE 7-2A Perpetual inventory using FIFO
Beginning inventory, purchases, and sales for Item B901 are as follows:
|
Aug. |
1 |
Inventory |
50 units at $80 |
|
9 |
Sale |
30 units |
|
|
13 |
Purchase |
40 units at $85 |
|
|
28 |
Sale |
25 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.