Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 4,000 units at $30 May 10 2,000 units at $32 May 12 2,800 units May 20 1,800 units at $34 May 14 2,400 units May 31 1,200 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 Purchases Total Cost Cost of Merchandise Sold Quantity Cost of Merchandise Sold Unit Cost Purchases Quantity Purchases Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Date May 1 May 10 May 10 o 0 0 May 12 0 0 May 14 May 20 I II II May 31 May 31 Balances