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

Question:

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

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.
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?
Exhibit 4: Present Value of an Amount to Be Received in Two Years