Perpetual Inventory Using LIFO

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

Inventory		Purchases		Sales
Dec. 1	3,000 units at $31	Dec. 10	1,500 units at $33	Dec. 12	2,100 units
		Dec. 20	1,350 units at $35	Dec. 14	1,800 units
				Dec. 31	900 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.

Schedule of Cost of Goods Sold
LIFO Method
Prepaid Cell Phones
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Dec. 1							fill in the blank 742d0701cfdb055_1	fill in the blank 742d0701cfdb055_2	fill in the blank 742d0701cfdb055_3
Dec. 10	fill in the blank 742d0701cfdb055_4	fill in the blank 742d0701cfdb055_5	fill in the blank 742d0701cfdb055_6				fill in the blank 742d0701cfdb055_7	fill in the blank 742d0701cfdb055_8	fill in the blank 742d0701cfdb055_9
							fill in the blank 742d0701cfdb055_10	fill in the blank 742d0701cfdb055_11	fill in the blank 742d0701cfdb055_12
Dec. 12				fill in the blank 742d0701cfdb055_13	fill in the blank 742d0701cfdb055_14	fill in the blank 742d0701cfdb055_15	fill in the blank 742d0701cfdb055_16	fill in the blank 742d0701cfdb055_17	fill in the blank 742d0701cfdb055_18
				fill in the blank 742d0701cfdb055_19	fill in the blank 742d0701cfdb055_20	fill in the blank 742d0701cfdb055_21
Dec. 14				fill in the blank 742d0701cfdb055_22	fill in the blank 742d0701cfdb055_23	fill in the blank 742d0701cfdb055_24	fill in the blank 742d0701cfdb055_25	fill in the blank 742d0701cfdb055_26	fill in the blank 742d0701cfdb055_27
Dec. 20	fill in the blank 742d0701cfdb055_28	fill in the blank 742d0701cfdb055_29	fill in the blank 742d0701cfdb055_30				fill in the blank 742d0701cfdb055_31	fill in the blank 742d0701cfdb055_32	fill in the blank 742d0701cfdb055_33
							fill in the blank 742d0701cfdb055_34	fill in the blank 742d0701cfdb055_35	fill in the blank 742d0701cfdb055_36
Dec. 31				fill in the blank 742d0701cfdb055_37	fill in the blank 742d0701cfdb055_38	fill in the blank 742d0701cfdb055_39	fill in the blank 742d0701cfdb055_40	fill in the blank 742d0701cfdb055_41	fill in the blank 742d0701cfdb055_42
							fill in the blank 742d0701cfdb055_43	fill in the blank 742d0701cfdb055_44	fill in the blank 742d0701cfdb055_45
Dec. 31	Balances					fill in the blank 742d0701cfdb055_46			fill in the blank 742d0701cfdb055_47

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