Perpetual Inventory Using LIFO

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

$\backslash$table$[[$Inventory$,,$Purchases,Sales,$],[$May $1,1,400$ units at $$22,$May $10,700$ units at $$24,$May $12,980$ units$],[,,20,630$ units at $$26,14,840$ 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

May $12$

Quantity Date Purchased

Purchases Purchases Quantity Unit Cost Total Cost Sold

May $1$

May $10$

May $14$

May $20$

May $31$

May $31$ Balances

Cost of Merchandise

Sold Unit Cost

$\backslash$table$[[700],[-70]]$

Cost of Merchandise

Sold Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost

$$16,800$

$-1,540$

$

$[-1,540],[18,480]$

$\backslash$table$[[$Date$,\backslash$table$[[$Quantity$],[$Purchased$]],\backslash$table$[[$Purchases$],[$Unit Cost$]],\backslash$table$[[$Purchases$],[$Total Cost$]],\backslash$table$[[$Quantity$],[$Sold$]],\backslash$table$[[$Sold$],[$Unit Cost$]],\backslash$table$[[$Sold$],[$Total Cc$]]],[$May $1],[$May $10,,$$$,$$$,,,],[$May $12,,,,700,$$$,$$$16,800$