The Ski Shop began February with an inventory of 50 ski vests that cost a total of $1,500, with each costing $30. The store purchased and sold merchandise on account as follows:
- Purchase 160 vests @ $35
- Sale 1100 vests @ $60
- Purchase 280 vests @ $40
- Sale 270 vests @ $70
Assume that Ski Shop uses the FIFO cost method. Cash payments on account totaled $5,100. Operating expenses were $2,400; the store paid two-thirds in cash and recorded the rest as accounts payable.
1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise.
2. Make journal entries to record the store's transactions.