Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 63 units @ $59 51 units Sale 36 units @ $62 20 Purchase Sale Sale 21 units 11 units Purchase 40 units @ $64 The business maintains a perpetual inventory system, costing by the first-in, first-out method. 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. a. 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. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Quantity Date Purchases Unit Purchases Total Quantity Cost of Merchandise Cost of Merchandise Sold Unit Cost of Merchandise Sold Total Purchased Cost Cost Sold Inventory Quantity Cost Cost Apr. 1 Apr. Inventory Unit Cost Inventory Total Cost 10 100001 101 Qubl. bunu Apr. Balances 30 b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method