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

April 1 Inventory 120 units at $39

6 Sale 90 units

14 Purchase 140 units at $40

19 Sale 110 units

25 Sale 45 units

30 Purchase 160 units at $43

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-out method?