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The accounting records of Wall's China Shop reflected thefollowing balances as of January 1, Year 2: Cash $ 18,500 Beginninginventory 13,800 (150 units @ $92) Common stock 15,000 Retainedearnings 17,300 The following five transactions occurred in Year 2:First purchase (cash) 120 units @ $94 Second purchase (cash) 200units @ $102 Sales (all cash) 425 units @ $186 Paid $15,650 cashfor salaries expenses. Paid cash for income tax at the rate of 40percent of income before taxes. Required a. Compute the cost ofgoods sold and ending inventory, assuming (1) FIFO cost flow, (2)LIFO cost flow, and (3) weighted-average cost flow. Compute theincome tax expense for each method. b. Record the abovetransactions in general journal form and post to T-accountsassuming (1) FIFO cost flow, (2) LIFO cost flow, and (3)weighted-average cost flow. Assume perpetual inventory system isused. 1. FIFO 2. LIFO 3. Weighted Average c. Use a vertical modelto show the Year 2 income statement, balance sheet, and statementof cash flows under FIFO, LIFO, and weighted average.