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This is not allowed John. You can purchase your father in law a gift card to make the purchase. Payment info must match the actual purchaser's info.
Gift cards are the only thing you can do in this situation. However in most states, you can register it to you and give it to him as a gift without a transfer being required from child to parent. Or from spouse to spouse, or parent to child. Even grandparents can gift handguns legally to grandchildren in most states without transfer, as long as the recipient is allowed to own one.
The ATF does allow purchasing firearms for yourself that you intend to give as gifts. You don't purchase it for someone else, though; that would be illegal. You purchase it for yourself, and then transfer/give it to the gift recipient. If your state requires private party transfers, you'll have to transfer it in accordance to the state laws. If your state does not require private party transfers, simply give it to him after you get it. But you buy it for yourself because buying for someone else is against the law. Ask your local dealer if you are not sure about private party transfers.