Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 4,200 units at $40 May 10 May 201 2,100 units at $42 1,890 units at $44 May 12 2,940 units May 14 2,520 units May 31 1,260 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 Merchand 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 Unit Cost Purchases Total Cost Quantity Cost of Merchandise Sold Sold Unit Cost May 1 May 10 May 12 May 14 May 000 000 Cost of Merchandise Sold Total Cost Inventory Quantity 000000 000 Inventory Unit Cost Inventory Total Cost 00000 DO 0000 Previous Next