Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Purchases Sales Inventory May 1 2,400 units at $38 $ May 10 May 12 1,680 units 1,200 units at $40 1,080 units at $42 20 14 1,440 units 31 720 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 int 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 Cost of Cost of Purchases Purchases Merchandise Merchandise Merchandise Sold Sold Unit Sold Total Unit Cost Cost Quantity Cost Total Cost Quantity Purchased Inventory Quantity Inventory Inventory Unit Total Cost Cost Date May 1 May 10 May 12 May 14 May 20 o May 31 May 31 Balances Previous Next