Inland Equipment sells hand held engine analyzers to automotive service shops. Inland Equipment started April with an inventory of 85 units that cost a total of \($12,750.\) During the month, Inland Equipment purchased and sold merchandise on account as follows:

Inland Equipment uses the LIFO method. Cash payments on account totaled \($21,700.\) Operating expenses for the month were \($12,000,\) with two-thirds paid in cash and the rest accrued as Accounts Payable.
Requirements 1. Which inventory method (excluding specific-unit) most likely mimics the physical flow of Inland Equipment’s inventory?
2. Prepare a perpetual inventory record, using LIFO cost, for this merchandise.
3. Journalize all transactions using LIFO. Record the payments on account and the operating expenses on the 30th.

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Apr 6 13 Purchased 125 units @ $160 Sold 110 units @ $310 19 Purchased 130 units @ $168 25 Sold 80 units @ $310 29 Sold 75 units @ $310