Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 44

Perpetual inventory using LIFO
Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:

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 5.
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method