Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory May 1 Purchases Sales 2,400 units at $25 May 10 20 1,200 units at $27 1,080 units at $29 May 12 1,680 units 14 1,440 units 31 720 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. Date Purchases Quantity Purchased Unit Cost Purchases Total Cost May 1 May 10 1,200 27 32,400 Schedule of Cost of Merchandise Sold FIFO Method Prepaid Cell Phones Cost of Merchandise Merchandise Sold Quantity Cost of Cost of Merchandise Inventory Inventory Sold Unit Cost Sold Total Cost Inventory Quantity Unit Total Cost Cost 2,400 25 $ 60,000 2,400 25 60,000 1,200 27 32,400 May 12 1,680 25 42,000 720 25 18,000 1,200 27 32,400 May 14 720 25 18,000 480 X 27 12,960 X 720 X 27 19,440 X May 201 1,080 29 31,320 720 X 27 V 19,440 X 1,080 29 31,320 May 31 720 X 27 19,440 X May 31 Balances 29