Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 2,000 units at $26 May 10 1,000 units at $28 May 12 1,400 units May 20 900 units at $30 May 14 1,200 units May 31 600 units Cost 26 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 Purchases Purchases Unit Purchases Total Cost of Merchandise Sold Cost of Merchandise Sold Unit Cost of Merchandise Sold Total Inventory Inventory Unit Inventory Total Date Quantity Cost Quantity Cost Cost Quantity Cost May 1 2.000 $ 26 $ 52.000 May 1,000 $ 28 28,000 2,000 52,000 1,000 28,000 1.400 $ 26 $ 36.400 400 X 10,400 x 1,000 28,000 200 [ 26 5,200 x 1.200 x 28 33,600 X 28 5,600 x 900 30 27,000 1,200 x 28 33,600 x 900 30 27.000 200 5,600 x 1.800 X 60 x 30 1,800 Balances