Schedule of Cost of Merchandise Sold

LIFO Method

Prepaid Cell Phones

Perpetual Inventory using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory May 1 1,900 units at $22 Purchases May 10 gso units at $24 855 units at $26 Sales May 12 14 31 1,330 units 1,140 units 570 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 Cost of Merchandise Merchandise Purchases Qua ntity Unit Cost Purchased Purchases Tota I Cost Qua ntity Sold Unit Cost Date May 1 May 10 May 12 May 14 May 20 May 31 May 31 Balances Sold Inventory Inventory Inventory Total Cost Quantity Unit Cost Total Cost 22,800 22,800 b. Based upon the preceding data, would ycn_' expect the inventory to be higher or lower using the first-in, first-crat method?