Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 1,700 units at $27 Dec. 10 850 units at $29 Dec. 12 1,190 units Dec. 20 765 units at $31 Dec. 14 1,020 units Dec. 31 510 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.

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

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 Purchases Unit Purchases Total Quantity Cost of Goods Sold Unit Cost of Goods Sold Total Cost Cost Sold Cost Cost Date Quantity Purchased Inventory Quantity Inventory Unit Cost Inventory Total Cost Dec. 1 DeC. 10 0 0 0 D D D 14 > - - - 20 O 31 Dec Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method