Perpetual Inventory Using LIFO

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

Inventory		Purchases		Sales
May 1	1,800 units at $39	May 10	900 units at $41	May 12	1,260 units
		20	810 units at $43	14	1,080 units
				31	540 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
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
May 1							fill in the blank e5cc660d9fbefbd_1	$fill in the blank e5cc660d9fbefbd_2	$fill in the blank e5cc660d9fbefbd_3
May 10	fill in the blank e5cc660d9fbefbd_4	$fill in the blank e5cc660d9fbefbd_5	$fill in the blank e5cc660d9fbefbd_6				fill in the blank e5cc660d9fbefbd_7	fill in the blank e5cc660d9fbefbd_8	fill in the blank e5cc660d9fbefbd_9
							fill in the blank e5cc660d9fbefbd_10	fill in the blank e5cc660d9fbefbd_11	fill in the blank e5cc660d9fbefbd_12
May 12				fill in the blank e5cc660d9fbefbd_13	$fill in the blank e5cc660d9fbefbd_14	$fill in the blank e5cc660d9fbefbd_15	fill in the blank e5cc660d9fbefbd_16	fill in the blank e5cc660d9fbefbd_17	fill in the blank e5cc660d9fbefbd_18
				fill in the blank e5cc660d9fbefbd_19	fill in the blank e5cc660d9fbefbd_20	fill in the blank e5cc660d9fbefbd_21
May 14				fill in the blank e5cc660d9fbefbd_22	fill in the blank e5cc660d9fbefbd_23	fill in the blank e5cc660d9fbefbd_24	fill in the blank e5cc660d9fbefbd_25	fill in the blank e5cc660d9fbefbd_26	fill in the blank e5cc660d9fbefbd_27
May 20	fill in the blank e5cc660d9fbefbd_28	fill in the blank e5cc660d9fbefbd_29	fill in the blank e5cc660d9fbefbd_30				fill in the blank e5cc660d9fbefbd_31	fill in the blank e5cc660d9fbefbd_32	fill in the blank e5cc660d9fbefbd_33
							fill in the blank e5cc660d9fbefbd_34	fill in the blank e5cc660d9fbefbd_35	fill in the blank e5cc660d9fbefbd_36
May 31				fill in the blank e5cc660d9fbefbd_37	fill in the blank e5cc660d9fbefbd_38	fill in the blank e5cc660d9fbefbd_39	fill in the blank e5cc660d9fbefbd_40	fill in the blank e5cc660d9fbefbd_41	fill in the blank e5cc660d9fbefbd_42
							fill in the blank e5cc660d9fbefbd_43	fill in the blank e5cc660d9fbefbd_44	fill in the blank e5cc660d9fbefbd_45
May 31	Balances					$fill in the blank e5cc660d9fbefbd_46			$fill in the blank e5cc660d9fbefbd_47

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