Perpetual Inventory UsingLIFO

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

Inventory Purchases Sales

Dec.1) 1,900 units at $26 Dec. 10) 950 units at $28 Dec. 12 ) 1,330 units

Dec. 20) 855 units at $30 Dec. 14) 1,140 units

Dec. 31) 570 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 inExhibit 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.

Schedule of Cost of Goods Sold

LIFO Method

Prepaid Cell Phones