9. Perpetual Inventory Using LIFO

   Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:

   Inventory		Purchases		Sales
   Dec. 1	3,900 units at $38	Dec. 10	1,950 units at $40	Dec. 12	2,730 units
   		Dec. 20	1,755 units at $42	Dec. 14	2,340 units
   				Dec. 31	1,170 units

   a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of goods 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

   Schedule of Cost of Goods Sold
   LIFO Method
   Prepaid Cell Phones
   Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
   Dec. 1
   Dec. 10
   Dec. 12
   Dec. 14
   Dec. 20
   Dec. 31
   Dec. 31	Balances

   b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?