Inland Equipment Sales, Inc., sells hand-held engine analyzers to automotive service shops. Inland Equipment Sales, Inc., started November with an inventory of 55 units that cost a total of $8,470. During the month, Inland Equipment Sales, Inc., purchased and sold merchandise on account as follows:

Nov 6 Purchased 105 units @ $168

Sold 90 units @ $310

Purchased 70 units @ S172

Sold 40 units @ $310

Sold 85 units @ $310

Inland Equipment Sales, Inc., uses the LIFO method. Cash payments on account totaled $19,900. Operating expenses for the month were $13,500, with two-thirds paid in cash and the rest accrued as Accounts Payable.

Requirements

1. Which inventory method (excluding specific-unit) most likely mimics the physical flow of Inland Equipment Sales, Inc.'s inventory?

2. Prepare a perpetual inventory record, using LIFO cost, for this merchandise.

3. Journalize all transactions using LIFO. Record the payments on account and the operating expenses on November 30?