Question: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for July are as follows: Inventory Purchases Sales July 1 3,100

Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales data for prepaid cell phones for July are as follows:

Inventory Purchases Sales
July 1 3,100 units at $22 July 10 1,550 units at $24 July 12 2,170 units
July 20 1,395 units at $26 July 14 1,860 units
July 31 930 units

a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale.

b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?

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