At the end of January 2018, the records of Regina Company showed the following for a particular item that sold at $18 per unit. Assume that all sales and purchases are on account:

2a. Which method would result in the highest pretax earnings? O FIFO O Weighted-average cost O Specific identification 2b. Which method would result in the lowest income tax expense? O Weighted-average cost O FIFO O Specific identification 2c. Which method would result in the most favourable cash flow? O Weighted-average cost O Specific identification O FIFO 3. Prepare journal entries to record the transactions that occurred in January 2018, assuming that FIFO is used for inventory costing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)At the end of January 2018, the records of Regina Company showed the following for a particular item that sold at $18 per unit. Assume that all sales and purchases are on account: Transactions Units Amount Inventory, January 1, 2018 500 $2,500 Sale, January 10 (400 Purchase, January 12 600 3,600 Sale, January 17 (300) Purchase, January 26 160 1,280 Required: 1. Assuming the use of a perpetual inventory system, prepare a summarized statement through gross profit on sales under each of the following inventory costing methods: (a) weighted-average cost, (b) FIFO, and (c) specific identification, assuming that the company is permitted to use this method. For specific identification, assume that the first sale was out of the beginning inventory and the second sale was out of the January 12 purchase. (Round your intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) REGINA COMPANY Partial Statement of Earnings For the Month Ended January 31, 2018 (a) (b) (c) Weighted- Average Cost FIFO Specific Identification Sales revenue $ 0 $ 0 Cost of sales O O Gross profit $ 0 $ 0 $ 0