Perpetual Inventory Using LIFO Beginning Inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales 2,300 units at May 1 May 10 1,150 units at 1,610 $27 May 12 $29 units 1,035 units at 20 1,380 14 $31 units 690 31 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, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Cost of Cost of Merchandise Merchandise Quantity Purchases Purchases Quantity Sold Sold Date Purchased Unit Cost Sold Unit Cost Total Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost May 1 May 10 1.150 33,350 29 May 12 1,610 3 1,380 May 14 May 20 1,035 31 32,085 10110 11100 1111 May 31 May 31 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first line out method? Higher Lower