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

Inventory $$ Purchases $$ Sales $$

Dec. $1310$ units at $$88$ Dec. $10144$ units at $$90$ Dec. $12240$ units

$20240$ units at $$9614166$ units

$31200$ units

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 $4.$

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

HIDE ANSWER

Check Figure: Inventory balance, December $31,$ $$8,064$