Toys "H" Us purchases inventor^' in crates of merchandise, so each unit of inventory is a crate of toys. Assume you are dealing with a single depanment in the Toys "H" Us store in Santa Barbara, California. The fiscal year of Toys "H" Us ends each January 31. Assume the depanment began fiscal year 20X5 with an inventory of 20 units that cost a total of S 1,200. During the year, the department purchased merchandise on accounts as follows: (Group B) Accounting for inventory using tlie perpetual system (Obj. I 2) April (30 units @ S65) S 1,950 August (50 units @ S65) 3,250 November (110 units (g S70) 7,700 Total purchases S12,900 Cash payments on account during the year totaled SI 1,390. During hscal year 20X5, the depanment sold 180 units of merchandise for SI 6,400, of which S5,300 was for cash and the balance was on account. Toys "H" Us uses the LIFO method for inventories. Department operating expenses for the year were S3, 630. The depanment 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 January 31, 20X5. Toys "H" Us uses a perpetual inventory system. 2. Determine the LIFO cost of the store's ending in\entor\- at January 31, 20X5. Use a T- account. 3. Prepare the department's income statement for the year ended January 31, 20X5. Include a complete heading, and show totals for gross profit and net income