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

Inventory		Purchases		Sales
May 1	2,000 units at $36	May 10	1,000 units at $38	May 12	1,400 units
		May 20	900 units at $40	May 14	1,200 units
				May 31	600 units

Assume that the business maintains a perpetual inventory system, costing by the first-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 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.

Schedule of Cost of Merchandise Sold FIFO Method Prepaid Cell Phones cost of Merchandise Sold Cost of Merchandise Sold Unit Cost Date e Purchases Unit P urchases Total Cost of Merchandise Sold Total Purchases Quantity Inventory Quantity Inventory Unit Cost Inventory Total Cost May 1 May 10 May May Balances