PE 7-3B Perpetual inventory using LIFO

Beginning inventory, purchases, and sales for Item MMM8 are as follows:

Jan.

1

Inventory

90 units at $17

8

Sale

75 units

15

Purchase

125 units at $18

27

Sale

80 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on January 27 and (b) the inventory on January 31.