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EX 6-5 Perpetual inventory using LIFO OBJ 2,3 ory balance, g inventory, purchases, and sales data for prepaid cell phones for May are as 20,160 follows: Sales Purchases May1 550 units at $44 May 10 720 units at $45 May 12 1200 units 14 830 units 1,000 units 20 1,200 units at $48 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 Inventory balance May 31, $21,120 EX 6-6 Perpetual inventory using FIFO OBJ. 2, 3 Assume that the business in Exercise 6-5 maintains a perpetual inventory system, costing by the first-in, first-out 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 ME HOW EX 6-7 FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year OBJ. 2, 3 b. $22,000 Beginning inventory Sale First purchase Sale Second purchase Sale 3,600 units at $4.00 2,400 units at $8.00 8,000 units at $4,20 6,000 units at $8.00 7.500 units at $4.40 5,500 units at $8.00 The firm uses the perpetual inventory system, and there are 5,200 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to (a) FIFO, (b) LIFO

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