Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable game players are as follows: 49 units @ $43 Apr. 1 Inventory Sale 15 Purchase Sale 36 units 21 units @ $46 21 units 10 units The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of the 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. Sale Purchase 38 units $48 Quantity Quantity Purchases Purchases Unit Date Purchased Cost Total Cost Cost of Merchandise Sold Perpetual Inventory Account First-in, First-out Method Portable Game Players Cost of Cost of Merchandise Merchandise Sold Sold Unit Cost Total Cost Inventory Inventory Inventory Unit Quantity Cost Total Cost Apr. 1 Apr. 10 Apr. 15 Apr. 20 Apr. 24 Apr. 30 Apr. 30 Balances 111 b. Based upon the preceding data, would you expect the ending inventory to be higher or lower using the last-in, first-out method?