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

Apr. 1		Inventory	56 units @ $52
10		Sale	43 units
15		Purchase	24 units @ $55
20		Sale	22 units
24		Sale	11 units
30		Purchase	29 units @ $58

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

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.

a. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?