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Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:
Inventory Purchases Sales May 1 1,300 units at $26 May 10 650 units at $28 May 12 910 units 20 585 units at $30 14 780 units 31 390 units Question Content Area
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 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 Merchandise 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
SoldCost of
Merchandise
Sold
Unit CostCost of
Merchandise
Sold
Total Cost
Inventory
Quantity
Inventory
Unit Cost
Inventory
Total CostMay 1 fill in the blank e714b208ff9803a_1 $fill in the blank e714b208ff9803a_2 $fill in the blank e714b208ff9803a_3 May 10 fill in the blank e714b208ff9803a_4 $fill in the blank e714b208ff9803a_5 $fill in the blank e714b208ff9803a_6 fill in the blank e714b208ff9803a_7 fill in the blank e714b208ff9803a_8 fill in the blank e714b208ff9803a_9 fill in the blank e714b208ff9803a_10 fill in the blank e714b208ff9803a_11 fill in the blank e714b208ff9803a_12 May 12 fill in the blank e714b208ff9803a_13 $fill in the blank e714b208ff9803a_14 $fill in the blank e714b208ff9803a_15 fill in the blank e714b208ff9803a_16 fill in the blank e714b208ff9803a_17 fill in the blank e714b208ff9803a_18 fill in the blank e714b208ff9803a_19 fill in the blank e714b208ff9803a_20 fill in the blank e714b208ff9803a_21 May 14 fill in the blank e714b208ff9803a_22 fill in the blank e714b208ff9803a_23 fill in the blank e714b208ff9803a_24 fill in the blank e714b208ff9803a_25 fill in the blank e714b208ff9803a_26 fill in the blank e714b208ff9803a_27 May 20 fill in the blank e714b208ff9803a_28 fill in the blank e714b208ff9803a_29 fill in the blank e714b208ff9803a_30 fill in the blank e714b208ff9803a_31 fill in the blank e714b208ff9803a_32 fill in the blank e714b208ff9803a_33 fill in the blank e714b208ff9803a_34 fill in the blank e714b208ff9803a_35 fill in the blank e714b208ff9803a_36 May 31 fill in the blank e714b208ff9803a_37 fill in the blank e714b208ff9803a_38 fill in the blank e714b208ff9803a_39 fill in the blank e714b208ff9803a_40 fill in the blank e714b208ff9803a_41 fill in the blank e714b208ff9803a_42 fill in the blank e714b208ff9803a_43 fill in the blank e714b208ff9803a_44 fill in the blank e714b208ff9803a_45 May 31 Balances $fill in the blank e714b208ff9803a_46 $fill in the blank e714b208ff9803a_47 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?
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