Refer to the data for Inland Equipment Sales, Inc., in P5-40A. However, assume Inland Equipment Sales, Inc., uses the average cost method.

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

2. Prepare a multi-step income statement for Inland Equipment Sales, Inc., for the month of November?