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Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 2,500

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Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 2,500 units at $37 May 10 1,250 units at $39 May 12 1,750 units May 20 1,125 units at $41 May 14 1,500 units May 31 750 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 Unt Cost column and in the inventory Unit Cost column. Schedule of Cost of Merchandise Sold FIFO Method Prepaid Cell Phones Purchases Purchases Purchases Cost of Merchandise Cost of Merchandise Cost of Merchandise Date Inventory Inventory Inventory Quantity Unit Cost Total Cost Sold Quantity Sold Unit Cost Sold Total Cost Quantity Unit Cost Total Cost May 1 May 1.250 39 45.750 10 May 12 1.750 HQ 1000 od Hobodo od MY 14 Il May 1125 46,125 Book Show Me How 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 Purchases Cost of Merchandise Cost of Merchandise Cost of Merchandise Date Quantity Unit Cost Total Cost Sold Quantity Sold Unit Cost Sold Total Cost May 1 May 1.250 19 48,750 10 Inventory Quantity Inventory Unit Cost Inventory Total Cost May 1.750 12 May 14 May 20 DOO 10 1,135 41 46,125 OOO OOO May 31 750 X May 31 Balances Food My Won Note that this exercise uses the perpetual inventory system FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending

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