Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory May 1 Purchases Sales 2,000 units at $39 May 10 20 1,000 units at $41 900 units at $43 May 12 1,400 units 14 1,200 units 31 600 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 Cost of Date: May 1 May 10 Quantity Purchased Purchases Purchases Unit Cost Total Cost May 12 Cost of Cost of Merchandise Merchandise Merchandise: Sold Sold Sold Quantity Total Cost Unit Cost 0 Inventory Quantity Inventory Inventory Unit Cost Total Cost