Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:

Date	Units and Cost
Dec. 1	310 units at $88

Date	Units and Cost
Dec. 10	144 units at $90
20	240 units at $96

Date	Units
Dec. 12	240 units
14	166 units
31	200 units

Question Content Area

a. Assuming that the perpetual inventory system is used, costing by the LIFO method, 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 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

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
Dec. 1							310	88	27,280
Dec. 10	Dec. 10	Dec. 10	Dec. 10				Dec. 10	Dec. 10	Dec. 10
							fill in the blank 14d73302804d001_7	fill in the blank 14d73302804d001_8	fill in the blank 14d73302804d001_9
Dec. 12				Dec. 12	Dec. 12	Dec. 12	Dec. 12	Dec. 12	Dec. 12
					fill in the blank 14d73302804d001_17	fill in the blank 14d73302804d001_18
Dec. 14				Dec. 14	Dec. 14	Dec. 14	Dec. 14	Dec. 14	Dec. 14
Dec. 20	Dec. 20	Dec. 20	Dec. 20				Dec. 20	Dec. 20	Dec. 20
							fill in the blank 14d73302804d001_31	fill in the blank 14d73302804d001_32	fill in the blank 14d73302804d001_33
Dec. 31				Dec. 31	Dec. 31	Dec. 31	Dec. 31	Dec. 31	Dec. 31
							fill in the blank 14d73302804d001_40	fill in the blank 14d73302804d001_41	fill in the blank 14d73302804d001_42
Dec. 31	Balances					Dec. 31			Dec. 31

Question Content Area

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

Higher/Lower