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Toy World began January with an inventory of 20 crates of toys that cost a total of $1,100.

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January 1st, 2018

Toy World began January with an inventory of 20 crates of toys that cost a total of $1,100. During the month, Toy World purchased and sold merchandise on account as follows: Purchase 1 30 crates @ $65Purchase 2 70 crates @ $70Sale 1 40 crates @ sale price of $100Sale 2 75 crates @ sale price of $110Toy World uses LIFO methodCash payments on account totaled $6,300. Operating expenses for the month were $3,600, with two-thirds paid in cash and the rest accrued as Accounts Payable. 1) Prepare a perpetual inventory record, at LIFO cost, for this merchandise. 2) Make journal entries to record Toy World’s transactions.

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