20 14 Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 1,700 units at $20 May 10 850 units at $22 May 12 1,190 units 765 units at $24 1,020 units 31 510 units Assume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. 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. Schedule of Cost of Merchandise Sold FIFO Method Prepaid Cell Phones Cost of Cost of Cost of Purchases Purchases Merchandise Merchandise Merchandise Quantity Sold Sold Inventory Inventory Sold Unit Total Unit Inventory Total Date Purchased Cost Quantity Cost Unit Cost Total Cost Quantity Cost Cost May 1 May 10 May 12 May 14 I l I 0 II DULI May 20 Il bl a May 31 May 31 Balances