2. Compare the two cases with regard to the pretax earnings and the ending inventory amounts. Comparison of Amounts Case A FIFO Pretax earnings Difference Ending Inventory Difference Case B Weighted Average 3. Which inventory costing method may be preferred for income tax purposes? O FIFO Weighted average 4. Prepare journal entries to record transactions (b) through (e), assuming that Scoresby uses FIFO for inventory costing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Scoresby Inc. uses a perpetual inventory system. At December 31, 2018, the company's accounting records provided the following information for Product B: Transactions Unit Units Cost a. Inventory, December 31, 2017 7,000 $ 8 For the year 2018: b. Purchase, March 5 19,000 9 c. Sale, June 15 ($29 each) 10,000 d. Purchase, September 19 8,000 11 e. Sale, November 20 ($31 each) 16,000 f. Operating expenses (excluding income tax expense), $500,000 Required: 1. Prepare a statement of earnings for 2018 through pretax earnings, showing the detailed computation of cost of sales for two cases: (Round intermediate calculations to 2 decimal places.) a. Case A-FIFO b. Case B-Weighted average. Cost of sales: SCORESBY, INC. Statement of Earnings (Partial) For the Year Ended December 31, 2018 Case A FIFO Case B Weighted Average