Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory May 1 1,800 units at $35 Purchases May 10 Sales 20 900 units at $37 810 units at $39 May 12 1,260 units 14 1.080 units 31 540 units Assume that the business maintains a perpetual inventory system, costing by the first-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 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. Schedule of Cost of Merchandise Sold FIFO Method Prepaid Cell Phones Date May 1 May 10 Purchases Purchases Quantity Unit Total Purchased Cost Cost Cost of Cost of Merchandise Merchandise Merchandise Sold Sold Sold Quantity Unit Cost Total Cost Cost of Inventory Inventory Inventory Unit Quantity Total Cost Cost 900 37 33,300 May 12 May 14 May 20 810 May 31 May 31 Balances 39 31,200 1.260 1,080 2,340 540 540 100 000 0 000