Beginning Inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 50 units $66 10 Sale 37 units 15 Purchase 22 units $69 20 Sale 17 units Sale 11 units Purchase 36 units $73 The business maintains a perpetual inventory system, costing by the first-in, Erst 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 ustrated in Exhibit a. Under FIFO, 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. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Quantity Purchases Purchases Quantity Cost of Cost of Merchandise Cost of Merchandise Inventory Inventory Inventory wate Purchased Unit Cost Total Cost Merchandise Sold Sold Unit Cost Sald Total Cost quantity Unit Cost Next > Check My Work Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable came players are as follows: Apr. 1 inventory 48 units $71 10 Sale 37 units 15 Purchase 63 units $74 20 Sale 36 units 24 Sale 9 units 30 Purchase 24 units $78 The business maintains a perpetual inventory system, costing by the last-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 strated in Ext 4 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. Schedule of Cost of Merchandise Sold LIFO Method Portable Game Players Quantity Purchases Purchases Quantity Cost of Merchandise Sold cost of Merchandise Sold Inventory Inventory Inventory Date Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Total Cost Apr Previous Next > Check My Work COOK Calculator Print Item Comparing Inventory Methods Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results. a. In each dropdown that follows, select the correct sign (less than (), or equal() for each comparison, assuming periods of rising prices. 1. FIFO, inventory LIFO inventory 2. FIFO cost of merchandise sold LIFO cost of merchandise sold 3. FIFO net income LIFO net income 4. FIFO income taxes LIFO income taxes b. Why would management prefer to use LIFO over FIFO in periods of rising prices? 1. The income shown on the company's tax return would be lower if LIFO rather than FIFO were used; thus, there is a tax advantage of using LIFO. 2. The inventory value would be lower if UFO rather than FIFO were used; thus, there is a tax advantage of using LIFO. 3. The income shown on the company's tax return would be higher if UFO rather than FIFO were used; thus giving a better dividend to the shareholders