Inventory		Purchases		Sales
May 1	2,700 units at $20	May 10	1,350 units at $22	May 12	1,890 units
		20	1,215 units at $24	14	1,620 units
				31	810 units

Question Content Area

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

Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones