Mountain Cycles uses the FIFO inventory method. Mountain started August with nine bicycles that cost $350 each. On August 16, Mountain bought 36 bicycles at $340 each. On August 31, Mountain sold 27 bicycles. Prepare Mountain's Prepare the perpetual inventory record. Start by entering the opening perpetual inventory record. inventory balance. Enter the transactions in chronological order. When entering sales, enter the first cost to come out of inventory on the first line. Be sure to calculate the balance after each transaction. (Use a minus sign or parentheses when subtracting numbers.)