1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

LIFO Perpetual Inventory The beginning inventory of merchandise at Keats Office Supplies and data on purchases and sales for a three-month period are as follows: Transaction Number Per Unit Total of Units March 3 Inventory 42 s 375 S15,750 Purchase 84 37,800 11 Sale 1.250 70,000 Sale 1,250 43,750 Purchase 35,000 April 8 10 Sale 42 1,250 52,500 1.250 26.250 Purchase 38,500 Sale 42 1.315 55.230 May 5 600 75600 I Purchase 126