Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: 67 units @ $92 Apr. 1 Inventory 10 Sale 48 units 15 Purchase 28 units @ $97 20 Sale 26 units 24 Sale 10 units 30 Purchase 24 units @ $103 The business maintains a perpetual inventory system, costing by the first-in, first-out method. 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. a. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Quantity Cost of Merchandise Cost of Merchandise Sold Unit Sold Cost Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Apr. 1 Apr 10 Apr. 15 28 $ 97 101 0 Apr. 20 01100 000 11111 111 010 ill. 10000 Apr. 24 Apr. 30 24 103 Apr. 36 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method? Lower Feedback Check My Work Consider the cost of inventory when purchased and when sold. Remember FIFO reports higher gross profit, net income, and ending inventory than the LIFO method when costs (prices) are increasing. . , )