EX 7.06Perpetual Inventory Using FIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:InventoryMay 1: 3,000 units at $26Purchases May 10: 1,500 units at $28May 20: 1,350 units at $30SalesMay 12: 2,100 unitsMay 14: 1,800 unitsMay 31: 900 unitsAssume 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. 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.

Inventory Purchases Sales May 1 3,000 units at $26 May 10 1,500 units at $28 May 12 2,100 units 20 1,350 units at $30 14 1,800 units 31 900 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 Cost of Cost of Merchandise Merchandise Merchandise Purchases Purchases Inventory Inventory Sold Sold Sold Quantity Unit Total Inventory Unit Total Date Purchased Cost Cost Quantity Unit Cost Total Cost Quantity Cost Cost May 1 May 10 May 12 May 14 10 00 0 00 00 0 000 00 0 May 20 O O 0 000 0 0OO 00 000 May 31 May 31 Balances