The Ski Shop began February with an inventory of 50 ski vests that cost a total of $1,500, with each costing $30. The store purchased and sold merchandise on account as follows:

Purchase 1........................60 vests @ $35

Sale 1...............................100 vests @ $60

Purchase 2........................80 vests @ $40

Sale 2.................................70 vests @ $70

Assume that Ski Shop uses the average cost method. Cash payments on account totaled $5,100. Operating expenses were $2,400; the store paid two-thirds in cash and recorded the rest as accounts payable.

1. Prepare a perpetual inventory record, at average cost. Round average unit cost to the nearest cent and all other amounts to the nearest dollar.

2. Prepare a multistep income statement for Ski Shop for the month of February.