1. Beginning inventory, purchases, and sales data for portable game players are as follows:

   Apr. 1		Inventory	180 units at $40
   10		Sale	140 units
   15		Purchase	210 units at $42
   20		Sale	170 units
   24		Sale	60 units
   30		Purchase	240 units at $46

   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. 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.

   Perpetual Inventory Account First-in, First-out Method Portable Game Players
   Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Cost of Merchandise Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
   Apr. 1
   Apr. 10
   Apr. 15
   Apr. 20
   Apr. 24
   Apr. 30
   Apr. 30	Balances

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