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

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

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Inventory Purchases Sales July 800 units at $45 July 10 500 units at $50 July 12 700 units 14 300 units 31 250 units 20 450 units at $52