Question - The ski shop began February with an inventory of 50 ski vests that cost a total of $1500, with each costing $30. The store purchased and sold merchandise on account as follows.

Purchase1- 60vests @$35

Sale1- 100vests @$60

Purchase2- 80vests @$40

Sale2- 70vests @$70

Assume that ski shop uses the FIFO cost method. Cash payments on account totaled $5,100. Operation expense were $2,400; the store paid two-thirds in cash and recorded the rest as accounts payable.

Requirements -

1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise.

2. Make journal entries to record the store's transactions.