Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory May 1 3,400 units at $20 Purchases May 10 20 1,700 units at $22 1,530 units at $24 Sales May 12 2,380 units 14 2,040 units 31 1,020 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 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 Schedule of Cost of Merchandise Sold FIFO Method Prepaid Cell Phones Cost of Date May 1 Purchases Purchases Quantity Unit Purchased Cost Total Cost Cost of Cost of Merchandise Merchandise Merchandise Sold Sold Sold Quantity Unit Cost Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost May 10 May 12 May 14 May 20 May 31 May 31 Balances 3