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

Date	Line Item Description	Units and Cost
Nov. 1	Inventory	41 units at $98
10	Sale	31 units
15	Purchase	18 units at $104
20	Sale	17 units
24	Sale	5 units
30	Purchase	35 units at $110

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

Question Content Area

a. Determine the cost of goods 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 Goods Sold Unit Cost column and in the Inventory Unit Cost column.

First-in, First-out Method DVD Players

Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Nov. 1							-----	-----	----
Nov. 10				-----	------	-----	-----	-----	-----
Nov. 15	------	-----	-----				-----	-----	-----
							-----	-----	-----
Nov. 20				-----	-----	-----	-----	-----	-----
				-----	-----	-----
Nov. 24				-----	-----	-----	-----	-----	-----
Nov. 30	-----	-----	-----				-----	-----	-----
							-----	-----	-----
Nov. 30	Balances					-----			-----

Question Content Area

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