Perpetual Inventory Using LIFO

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

Inventory		Purchases		Sales
July 1	3,800 units at $20	July 10	1,900 units at $22	July 12	2,660 units
		July 20	1,710 units at $24	July 14	2,280 units
				July 31	1,140 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. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones cell Phones Date Quantity Purchased July 1 July 10 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 3,800 20 $ 76,00 July 12 July 14 July 20 July 31 July 31 Balances