Perpetual Inventory Using LIFO

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

Inventory		Purchases		Sales
May 1	3,500 units at $35	May 10	1,750 units at $37	May 12	2,450 units
		20	1,575 units at $39	14	2,100 units
				31	1,050 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 91919303500dfd0_1	$fill in the blank 91919303500dfd0_2	$fill in the blank 91919303500dfd0_3
May 10	fill in the blank 91919303500dfd0_4	$fill in the blank 91919303500dfd0_5	$fill in the blank 91919303500dfd0_6				fill in the blank 91919303500dfd0_7	fill in the blank 91919303500dfd0_8	fill in the blank 91919303500dfd0_9
							fill in the blank 91919303500dfd0_10	fill in the blank 91919303500dfd0_11	fill in the blank 91919303500dfd0_12
May 12				fill in the blank 91919303500dfd0_13	$fill in the blank 91919303500dfd0_14	$fill in the blank 91919303500dfd0_15	fill in the blank 91919303500dfd0_16	fill in the blank 91919303500dfd0_17	fill in the blank 91919303500dfd0_18
				fill in the blank 91919303500dfd0_19	fill in the blank 91919303500dfd0_20	fill in the blank 91919303500dfd0_21
May 14				fill in the blank 91919303500dfd0_22	fill in the blank 91919303500dfd0_23	fill in the blank 91919303500dfd0_24	fill in the blank 91919303500dfd0_25	fill in the blank 91919303500dfd0_26	fill in the blank 91919303500dfd0_27
May 20	fill in the blank 91919303500dfd0_28	fill in the blank 91919303500dfd0_29	fill in the blank 91919303500dfd0_30				fill in the blank 91919303500dfd0_31	fill in the blank 91919303500dfd0_32	fill in the blank 91919303500dfd0_33
							fill in the blank 91919303500dfd0_34	fill in the blank 91919303500dfd0_35	fill in the blank 91919303500dfd0_36
May 31				fill in the blank 91919303500dfd0_37	fill in the blank 91919303500dfd0_38	fill in the blank 91919303500dfd0_39	fill in the blank 91919303500dfd0_40	fill in the blank 91919303500dfd0_41	fill in the blank 91919303500dfd0_42
							fill in the blank 91919303500dfd0_43	fill in the blank 91919303500dfd0_44	fill in the blank 91919303500dfd0_45
May 31	Balances					$fill in the blank 91919303500dfd0_46			$fill in the blank 91919303500dfd0_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?

Higher/Lower