ance, 21 )-4 Perpetual inventory using LIFO OBJ. 2, 3 Assume that the business in Exercise 7-3 maintains a perpetual inventory system, costing by the last-in, first-out 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. ow w e ence, EX 7-5 Perpetual inventory using LIFO OBJ. 2,3 Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory May 1 1,550 units at $44 Purchases May 10 20 720 units at $45 1,200 units at $48 Sales May 12 1,200 units 14 830 units 31 1,000 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. b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? OBJ. 2,3 EX 7-6 Perpetual inventory using FIFO