The accounting records of Walls China Shop reflected the following balances as of January 1,...
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Accounting
The accounting records of Walls China Shop reflected the following balances as of January 1, Year 2: Cash $17,600 Beginning inventory 18,040 (205 units @ $88) Common stock 14,500 Retained earnings 21,140 The following five transactions occurred in Year 2: First purchase (cash) 125 units @ $90 Second purchase (cash) 205 units @ $98 Sales (all cash) 360 units @ $188 Paid $14,100 cash for salaries expense. Paid cash for income tax at the rate of 25 percent of income before taxes. Required Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. Use a vertical model to show the Year 2 income statement, balance
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