Star Equipment, Inc., sells hand-held engine analyzers to automotive service shops. Star Equipment, Inc., started April with an inventory of 75 units that cost a total of $10,500. During the month, Star Equipment, Inc., purchased and sold merchandise on account as follows:

Apr 6 Purchased 125 units @ $144

13 Sold 110 units @ $295

19 Purchased 160 units @ S154

25 Sold 120 units @ $295

29 Sold 105 units @ $295

Star Equipment, Inc., uses the LIFO method. Cash payments on account totaled $31,600. Operating expenses for the month were $17,400, 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 Star Equipment 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 April 30?