AC201 Unit 5 Homework... The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. Cash Beginning inventory Common stock Retained earnings The following five transactions occurred in Year 2: 1. First purchase (cash): 120 units @ $91 2. Second purchase (cash): 195 units @ $99 3. Sales (all cash): 420 units @ $185 4. Paid $15,250 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes $ 18,700 13,795 (155 units @ $89) 14,400 18,095 Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) we flow. Compute the income tax expense for each method. b. Record the above transactions in general journal form and post to T-accounts assuming each of the cost flows lis perpetual inventory system is used. 1. FIFO 2. LIFO 3. Weighted Average c. Use a vertical model to show the Year 2 income statement holand

Calculations to 3 decimal places. Round your final answero cost flow. Assume perpetual inventory system is used. (R \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ WALL's CHINA SHOP } \\ \hline For Year Ended December 31, Year 2 \\ \hline \end{tabular} Calculations to 3 decimal places. Round your final answero cost flow. Assume perpetual inventory system is used. (R \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ WALL's CHINA SHOP } \\ \hline For Year Ended December 31, Year 2 \\ \hline \end{tabular}