which inventory method most likely mimics the physical flow of fit world rsquo s inv 643037

Accounting for inventory using the perpetual system—LIFO, and journalizing inventory transactions Fit World began January with an inventory of 80 crates of vitamins that cost a total of $4,000. During the month, Fit World purchased and sold merchandise on account as follows:

Fit World uses the LIFO method. Cash payments on account totaled $5,000. Operating expenses for the month were $3,300, with two thirds paid in cash, and the rest accrued as Accounts payable.

Requirements

1. Which inventory method most likely mimics the physical flow of Fit World’s inventory?

2. Prepare a perpetual inventory record, using LIFO cost, for this merchandise.

3. Journalize all transactions using LIFO.