Babycare accounting year ends each 31 January. Assume you are dealing with a single Babycare store in Leamington Spa, Warwickshire and that the following transactions need to be recorded: opening stock in 20x5 of 20,000 units that cost a total of £1,200,000.

During the year the store purchased goods on credit as follows:

Cash payments to suppliers during the year totalled £11,190,000.
During fiscal year 20x5, the store sold 180,000 units of goods for £16,400,000, of which £5,300,000 was for cash and the remaining was on credit. Babycare uses the LIFO stock valuation method.
Operating expenses for the year were £3,500,000, and the store paid 75 percent in cash and accrued the rest. Also, the store accrued income tax at the rate of 30 percent.
Required 

1 Make summary journal entries to record the store’s transactions for the year ended 31 January 20x5. Babycare uses the perpetual inventory method to record stocks.
2 Determine the closing stock based on LIFO stock valuation method using a T-account.
3 Prepare the store’s income statement for the year ended 31 January 20x5.

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April (30,000 units @ 65) August (50,000 units @ 65) November (90,000 units @ 70) Total purchases 1,950,000 3,250,000 6,300,000 11,500,000