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:

Details The perpetual inventory using LIFO is shown. The three columns are labeled Inventory, Purchases, and Sales. The data given are as follows: Inventory: May 1, 1,550 units at $ 44; Purchases: May 10, 720 units at $ 45; May 20, 1,200 units at $ 48; Sales: May 12, 1,200 units; May 14, 830 units, and May 31, 1,000 units. 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. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?