Vitamin World began January with an inventory of 90 crates of vitamins that cost a total of \($3,600\). During the month, Vitamin World purchased and sold merchandise on account as follows:

Vitamin World uses the LIFO method.
Cash payments on account totaled \($5,100\). Operating expenses for the month were \($2,400\), with two-thirds paid in cash, and the rest accrued as Accounts payable.
Requirements
1. Which inventory method most likely mimics the physical flow of Vitamin World’s inventory?
2. Prepare a perpetual inventory record, using LIFO cost, for this merchandise.
3. Journalize all transactions using LIFO.

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Purchase 1 .... 120 crates @ $ 45 Sale 1 ..... 170 crates @ $ 80 Purchase 2 Sale 2..... 120 crates @ $ 50 130 crates @ $ 90