Perpetual Inventory Using LIFO

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

Inventory		Purchases		Sales
May 1	2,200 units at $24	May 10	1,100 units at $26	May 12	1,540 units
		20	990 units at $28	14	1,320 units
				31	660 units

Question Content Area

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 fdf9d100d028f8d_1	$fill in the blank fdf9d100d028f8d_2	$fill in the blank fdf9d100d028f8d_3
May 10	fill in the blank fdf9d100d028f8d_4	$fill in the blank fdf9d100d028f8d_5	$fill in the blank fdf9d100d028f8d_6				fill in the blank fdf9d100d028f8d_7	fill in the blank fdf9d100d028f8d_8	fill in the blank fdf9d100d028f8d_9
							fill in the blank fdf9d100d028f8d_10	fill in the blank fdf9d100d028f8d_11	fill in the blank fdf9d100d028f8d_12
May 12				fill in the blank fdf9d100d028f8d_13	$fill in the blank fdf9d100d028f8d_14	$fill in the blank fdf9d100d028f8d_15	fill in the blank fdf9d100d028f8d_16	fill in the blank fdf9d100d028f8d_17	fill in the blank fdf9d100d028f8d_18
				fill in the blank fdf9d100d028f8d_19	fill in the blank fdf9d100d028f8d_20	fill in the blank fdf9d100d028f8d_21
May 14				fill in the blank fdf9d100d028f8d_22	fill in the blank fdf9d100d028f8d_23	fill in the blank fdf9d100d028f8d_24	fill in the blank fdf9d100d028f8d_25	fill in the blank fdf9d100d028f8d_26	fill in the blank fdf9d100d028f8d_27
May 20	fill in the blank fdf9d100d028f8d_28	fill in the blank fdf9d100d028f8d_29	fill in the blank fdf9d100d028f8d_30				fill in the blank fdf9d100d028f8d_31	fill in the blank fdf9d100d028f8d_32	fill in the blank fdf9d100d028f8d_33
							fill in the blank fdf9d100d028f8d_34	fill in the blank fdf9d100d028f8d_35	fill in the blank fdf9d100d028f8d_36
May 31				fill in the blank fdf9d100d028f8d_37	fill in the blank fdf9d100d028f8d_38	fill in the blank fdf9d100d028f8d_39	fill in the blank fdf9d100d028f8d_40	fill in the blank fdf9d100d028f8d_41	fill in the blank fdf9d100d028f8d_42
							fill in the blank fdf9d100d028f8d_43	fill in the blank fdf9d100d028f8d_44	fill in the blank fdf9d100d028f8d_45
May 31	Balances					$fill in the blank fdf9d100d028f8d_46			$fill in the blank fdf9d100d028f8d_47

Question Content Area

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

HigherLower