The accounting records of Walls China Shop reflected the following balances as of January Year :
Cash $
Beginning inventory units @ $
Common stock
Retained earnings
The following five transactions occurred in Year :
First purchase cash units @ $
Second purchase cash units @ $
Sales all cash units @ $
Paid $ cash for salaries expense.
Paid cash for income tax at the rate of percent of income before taxes.
Required
Compute the cost of goods sold and ending inventory, assuming
FIFO cost flow
LIFO cost flow and
weightedaverage cost flow
Use a vertical model to show the Year income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. Hint: Record the events under an accounting equation before preparing the statements.
