Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory   Purchases   Sales   May 1 1,800 units at $31 May 10 900 units at $33 May 12 1,260 units     May 20 810 units at $35 May 14 1,080 units         May 31 540 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 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. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost May 1               $ $ May 10   $ $                                 May 12         $ $                           May 14                   May 20                                       May 31                                       May 31 Balances         $     $

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 1,800 units at $31 May 10 900 units at $33 May 12 1,260 units
    May 20 810 units at $35 May 14 1,080 units
        May 31 540 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 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.

Schedule of Cost of Merchandise Sold
LIFO Method
Prepaid Cell Phones
Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost
May 1               $ $
May 10   $ $            
                   
May 12         $ $      
                   
May 14                  
May 20                  
                   
May 31                  
                   
May 31 Balances         $     $
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