Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 3,700 units at $38 Dec. 10 1 ,850 units at $40 Dec. 12 2,590 units Dec. 20 1 ,665 units at $42 Dec. 14 2,220 units Dec. 31 1,110 units a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of goods 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Quantity Purchases Unit Schedule of Cost of Goods Sold LIFO Method Prepaid Cell Phones Cost of Goods Sold cost of Goods Sold Unit Cost Purchases Total Quantity Inventory Inventory Unit Inventory Total 31 b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first in, first-out method? Check My Work Previous Next >