Perpetual Inventory Using LIFO

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

Inventory Purchases Sales May 1 2,600 units at $22 May 10 1,300 units at $24 May 12 1,820 units May 20 1,170 units at $26 May 14 1,560 units May 31 780 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 Cost of Merchandise Sold Cost of Merchandise Sold Unit Cost Total Cost Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Inventory Quantity Inventory Unit Cost Inventory Total Cost 2,600 $ 22 57,200 May 1 May 10 1,300 24 $ 31,200 2,600 22 57,200 1,300 24 31,200 May 12 1,300 24 $ 31,200 1,680 22 520 22 11,440 1,560 22 34,320 520 > 22 11,440 May 14 May 20 1,170 26 30,420 520 22 11,440 1,170 26 30,420 May 31 780 26 20,280 520 22 11,440 390 26 10,140 May 31 Balances $ 97,240