Perpetual Inventory Using LIFO

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

Inventory Purchases Sales

May $12,800$ units at $$33$ May $101,400$ units at $$35$ May $121,960$ units

$201,260$ units at $$37141,680$ units

$31840$ units

Question Content Area

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

Date

Quantity

Purchased

Purchases

Unit Cost

Purchases

Total Cost

Quantity

Sold Cost of

Merchandise

Sold

Unit Cost Cost of

Merchandise

Sold

Total Cost

Inventory

Quantity

Inventory

Unit Cost

Inventory

Total Cost

May $1$ fill in the blank $44$da$50$fbd$02$efee$\_1$

$fill in the blank $44$da$50$fbd$02$efee$\_2$

$fill in the blank $44$da$50$fbd$02$efee$\_3$

May $10$ fill in the blank $44$da$50$fbd$02$efee$\_4$

$fill in the blank $44$da$50$fbd$02$efee$\_5$

$fill in the blank $44$da$50$fbd$02$efee$\_6$

fill in the blank $44$da$50$fbd$02$efee$\_7$

fill in the blank $44$da$50$fbd$02$efee$\_8$

fill in the blank $44$da$50$fbd$02$efee$\_9$

fill in the blank $44$da$50$fbd$02$efee$\_10$

fill in the blank $44$da$50$fbd$02$efee$\_11$

fill in the blank $44$da$50$fbd$02$efee$\_12$

May $12$ fill in the blank $44$da$50$fbd$02$efee$\_13$

$fill in the blank $44$da$50$fbd$02$efee$\_14$

$fill in the blank $44$da$50$fbd$02$efee$\_15$

fill in the blank $44$da$50$fbd$02$efee$\_16$

fill in the blank $44$da$50$fbd$02$efee$\_17$

fill in the blank $44$da$50$fbd$02$efee$\_18$

fill in the blank $44$da$50$fbd$02$efee$\_19$

fill in the blank $44$da$50$fbd$02$efee$\_20$

fill in the blank $44$da$50$fbd$02$efee$\_21$

May $14$ fill in the blank $44$da$50$fbd$02$efee$\_22$

fill in the blank $44$da$50$fbd$02$efee$\_23$

fill in the blank $44$da$50$fbd$02$efee$\_24$

fill in the blank $44$da$50$fbd$02$efee$\_25$

fill in the blank $44$da$50$fbd$02$efee$\_26$

fill in the blank $44$da$50$fbd$02$efee$\_27$

May $20$ fill in the blank $44$da$50$fbd$02$efee$\_28$

fill in the blank $44$da$50$fbd$02$efee$\_29$

fill in the blank $44$da$50$fbd$02$efee$\_30$

fill in the blank $44$da$50$fbd$02$efee$\_31$

fill in the blank $44$da$50$fbd$02$efee$\_32$

fill in the blank $44$da$50$fbd$02$efee$\_33$

fill in the blank $44$da$50$fbd$02$efee$\_34$

fill in the blank $44$da$50$fbd$02$efee$\_35$

fill in the blank $44$da$50$fbd$02$efee$\_36$

May $31$ fill in the blank $44$da$50$fbd$02$efee$\_37$

fill in the blank $44$da$50$fbd$02$efee$\_38$

fill in the blank $44$da$50$fbd$02$efee$\_39$

fill in the blank $44$da$50$fbd$02$efee$\_40$

fill in the blank $44$da$50$fbd$02$efee$\_41$

fill in the blank $44$da$50$fbd$02$efee$\_42$

fill in the blank $44$da$50$fbd$02$efee$\_43$

fill in the blank $44$da$50$fbd$02$efee$\_44$

fill in the blank $44$da$50$fbd$02$efee$\_45$

May $31$ Balances $fill in the blank $44$da$50$fbd$02$efee$\_46$

$fill in the blank $44$da$50$fbd$02$efee$\_47$

Question Content Area

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