Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory May 1 Purchases 3,900 units at $32 May 10 20 1,950 units at $34 1,755 units at $36 Sales May 12 2,730 units 14 2,340 units 31 1,170 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 Purchases Quantity Date Purchased May 1 Unit Cost Total Cost Cost of Cost of Cost of Merchandise Merchandise Merchandise Sold Sold Sold Quantity Unit Cost Total Cost Inventory Inventory Inventory Unit Total Quantity Cost Cost May 10 May 12 May 14 May 20 May 31 3 B B May 31 Balances 000 000 1000 LUT