P6-1B. Computing FIFO and journalizing inventory transactions (Learning Objectives 1 \& 2) 15-20 min. 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: Star Equipment Inc. uses the FIFO method. Cash payments on account totalled $31,600. Operating expenses for the month were $17,400, of which two-thirds were paid in cash and the rest accrued as Accounts Payable. Requirements 1. Which inventory method (excluding specific identification) most likely mimics the physical flow of Star Equipment Inc.'s inventory? 2. Prepare a perpetual inventory record, using FIFO, for this merchandise. 3. Journalize all transactions using FIFO. Record the payments on account and the operating expenses on April 30