CengageNow2 Online teaching and Perpetual Inventory Using F

CengageNow2 | Online teaching and Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item ER27 are as follows: August 1 Inventory7 9 Sale 13 Purchase 28 Sale units $18 64 units 78 units $21 17 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 PreviousNe All work saved

Solution

a Cost of merchandise sold on August 28=(77-64)*18+(4*21)= $318 b Inventory on August 31 = (78-4)*21= $1554