Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 3,600 units at $38 May 10 1,800 units at $40 May 12 2,520 units May 20 1,620 units at $42 May 14 2,160 units May 31 1,080 units a. Assuming that the perpetual inventory system is used, costing by the LIFO 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 4. Under LIFO, If units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Date Quantity Purchased Purchases Purchases Unit Cost Total Cost Quantity Sold Cost of Cost of Merchandise Sold Merchandise Sold Unit Cost Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost May 1 JO May 10 - S $ eBook Show Me How Cost of Date Quantity Purchased Cost of Quantity Sold Total Cost Merchandise Sold Merchandise Sold Toventory Inventory Inventory Unit Cost Total Cost ull II 1000 10000 Q111 11100 (DI. III. May Balances $ 31 b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? Higher 6Y W A