Computing LIFO and journalizing inventory transactions (learning objectives 1&2 ) Watkins equipment sells hand-held engine analyzers to automotive service shops. Watkins equipment started April with an inventory of 140 units that cost a total of $22,120. During the month, Watkins equipment purchased and sold merchandise on account as follows: April 6 Purchased 60 units @ $160 13 sold 50 units @ $310 19 purchased 80 units @ 162 25 sold 60 units @ 310 29 sold 110 units @ 310 Watkins equipment uses the LIFO method. Cash payment on account totaled $ 18,400 operating expenses for the month were $16,200 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 Watkins equipment 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. P5-41A. computing average cost and preparing a multi-step income statement Refer to the data uses average cost method. 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 Watkins equipment for the month of april.