Problem 1 Worth 4 pts. 2 pts. each

The following data are available for one of the products sold by Paschal Exports, which uses a perpetual inventory system.

July	1	Beginning inventory, 1,000 units at $2 each	$2,000
	5	Purchased 2,000 units at $2.75 each	5,500
	10	Sold 2,500 units for $16 each
	15	Purchased 2,000 units at $4 each	8,000
	25	Sold 1,500 units for $12 each
	31	Ending inventory, 1,000 units

If the LIFO method of inventory costing is used, determine the following dollar amounts:

Solution:

1.	Cost of goods sold for the units sold on July 10th?
2.	Ending inventory on July 31st?