Perpetual inventory using LIFO

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

Date	Units and Cost
Dec. 1	2,800 units at $23

Date	Units and Cost
Dec. 10	1,400 units at $25
20	1,260 units at $27

Date	Units
Dec. 12	1,960 units
14	1,680 units
31	840 units

Question Content Area

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.

Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Dec. 1
Dec. 10
Dec. 12
Dec. 14
Dec. 20
Dec. 31
Dec. 31	Balances

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?