Perpetual inventory using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Dec. 1 1,600 units at $22 Purchases Dec. 10 800 units at $24 20 720 units at $26 Sales Dec. 12 1,120 units 14 960 units 31 480 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. Date Dec. 1 Dec. 10 Schedule of Cost of Goods Sold LIFO Method Prepaid Cell Phones Cost of Cost of Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory Sold Unit Cost Purchased Unit Cost Total Cost Total Cost Quantity Unit Cost Total Cost 8

Perpetual inventory using uro Beginning irwentory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Dec. 11,600 units at $22 Sales Dec. 12 1,120 units 14960 units 31480 units first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. a. Assuming that the perpetual inventory system is used, costing by the UFo methed, determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form Ulustrated in Exhibit 4. Under LFO, 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 Imventory Unit Cost column. b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method