EX 7-3. Perpetual inventory using FIFO Obj. 2, 3 Beginning inventory, purchases, and sales data for portable game players are as follows: Show Me How Apr. 1 10 15 20 34 30 Inventory Sale Purchase Sale Sale Purchase 120 units at $26 90 units 140 units at $28 110 units 40 units 160 units at 55 The business maintains a perpetual inventory system, costing by the first-in, first-out method, a Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method? V ANSWER Check Figure: Inventory balance, April 30, $5,360