Toy World began January with an inventory of 20 crates of toys that cost a total of $1,100. During the month, Toy World purchased and sold merchandise on account as follows:

Cash payments on account totaled \(\$ 6,300\). Operating expenses for the month were \(\$ 3,600\), with two-thirds paid in cash and the rest accrued as Accounts Payable.

Requirements 

1. Prepare a perpetual inventory record, at LIFO cost, for this merchandise.

2. Make journal entries to record Toy World's transactions. 

Transcribed Image Text:

Purchase 1 30 crates @ $65 Sale 1 Purchase 2 70 crates @ $70 75 crates @ sale price of $110 40 crates @sale price of $100 Sale 2