Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory May 1 2,600 units at $31 Purchases May 10 May 20 1,300 units at $33 1,170 units at $35 Sales May 12 May 14 May 31 1,820 units 1,560 units 780 units Cost of Merchandise Sold Total Cost Inventory Inventory Unit Inventory Total Quantity Cost 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 Unit Purchases Total Cost Cost Quantity Sold Cost of Merchandise Sold Unit Cost May 1 May 10 May 12 May 14 May 20 May 31 QII I Q b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? May Balances 31 0000 00000 0000000 11111111011