perpetual inventory using LIFO

Perpetual Inventory Using LIFO Beginning inventory. purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 2,400 units at $34 May 10 1,200 units at $36 May 12 1,680 units 20 1,080 units at $38 14 1,440 units 31 720 units a. Assuring 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 hot 4. Under LIFO, K 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 Cost of Cost of Merchandise Merchandise Sold Sold Unit Cost Total Cost Quantity Purchased Purchases Purchases Quantity Unit Cost Total Cost Sold Inventory Inventory Inventory Quantity Unit Cost Total Cost Date May 1 May 10 May 12 May 14 May 20 I . 1 May 31 May 21 Balances 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 All work saved