Pier 1 Imports operates more than 800 stores. Assume you are dealing with one department in a Pier I store in Dallas. The company's fiscal year ends each February 28. Also assume the department began fiscal year 20X0 with an inventory of 50 units that cost $2.135. During the year, the department purchased merchandise on account as follows: March (60 units @ $32) August (40 units @ $34) October (180 units @ $35) Total purchases...... Cash payments on account during the year totaled $9,110. $1,920 1.360 6,300 $9.580 During fiscal year 20X0, the department sold 300 units of merchandise for $13.400, of which $4.700 was for cash and the balance was on account. Pier 1 uses the weighted-average cost method for inventories. Operating expenses for the year were $2.430. The department paid two-thirds in cash and accrued the rest. Required 1. Make summary journal entries to record the department's transactions for the year ended February 28, 20X0. The company uses a perpetual inventory system. 2. Determine the weighted-average cost of the department's ending inventory at February 28, 20X0. Follow the computational approach illustrated in Exhibit 9-5. 3. Prepare the department's income statement for the year ended February 28, 20X0. Show totals for gross profit and net income.