Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 Inventory 75 units $63 10 Sale 53 units 15 Purchase 41 units $67 20 Sale 27 units 24 Sale 27 units 30 Purchase 34 units $70 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 Blustrated in Exhibit 3, 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. Show Me HOW Print Item in the Inventory Unit Cost column. Perpetual Inventory Account First-In, First-out Method Portable Game Players Quantity Purchases Purchases Date Quantity Purchased Unit Total Cost of Merchandise Sold Sold Unit Cost Cost of Cost of Merchandise Merchandise Sold Total Cost Inventory Inventory Cost Cost Inventory Unit Quantity Cost Total Cost Apr. 1 75 Apr. 10 53 V 63 3,339 Apr. 15 41 V 67 V 2,747 V Apr. 20 27 X 67 X 1,809 X Apr. 24 27 V 67 V 1,809 Apr. 30 34 V 70 V 2,380 V Apr. 30 Balances Feedback 0 100 000 1000 200 b. Based upon the preceding data, would you expect the ending inventory to be higher or lower using the last-in, first-out method? Feedback Check My Work Consider the cost of inventory when purchased and when sold. Remember FIFO reports higher gross profit, net income, and enda LIFO method when costs (prices) are increasing