Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 1,500 units at $25 May 10 750 units at $27 May 12 1,050 units May 20 675 units at $29 May 14 900 units May 31 450 units 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 ilustrated 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 Cost of Cost of Quantity Date Quantity Purchases Purchases Merchandise Merchandise Purchased Inventory Inventory Inventory Sold Unit Cost Total Cost Total Sold Unit Cost Sold Total Cost Quantity Unit Cost Cost May 1 May 10 May 12 1100 Q111 0 May Schedule of Cost of Merchandise Sold LIFO Method Prepald Cell Phones Date Quantity Purchases Purchases Purchased Unit Cost Total Cost Quantity Sold Cost of Cost of Merchandise Merchandise Sold Unit Cost Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost May 1 May 10 May 12 May 14 May 20 May 31 o o May 31 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first in, first-out method