Perpetual Inventory Using FIFO 14 Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 1,600 units at $33 May 10 800 units at $35 May 12 1,120 units 20 720 units at $37 960 units 31 480 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 Sold Sold Sold Quantity Unit Cost Total Cost Purchases Purchases Unit Total Cost Cost Quantity Purchased Inventory Inventory Unit Total Cost Cost Inventory Quantity Date May 1 May 10 May 12 FIFO Method Prepaid Cell Phones Cost of Cost of Cost of Merchandise Merchandise Merchandise Sold Sold Sold Quantity Unit Cost Total Cost Purchases Purchases Unit Total Cost Cost Quantity Purchased Inventory Quantity Inventory Inventory Unit Total Cost Cost Date May 1 May 10 May 12 May 14 May 20 May 31 May 31 Balances