Beginning inventory, purchases, and sales data for portable DVD players are as follows:

The business maintains a perpetual inventory system, costing by the first-in, first-out method.
a. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-outmethod?

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Apri Inventory 120 units at $39 6 Sale 14 Purchase 19 Sale 25 Sale 30 Purchase 90 units 140 units at $40 110 units 45 units 160 units at $43