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Been struggling to find out how to get the Lifo/Fifo. please help with this problem a-d and include work shown if possible! The accounting records
Been struggling to find out how to get the Lifo/Fifo. please help with this problem a-d and include work shown if possible!
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 $18,200 17,425 (205 units $85) 15,300 20,325 The following five transactions occurred in Year 2: 1. First purchase (cash) 115 units @ $87 2. Second purchase (cash) 195 units a $95 3. Sales (all cash) 350 units @ $192 4. Paid $16,850 cash for salaries expense 5. Pald cash for income tax at the rate of 25 percent of income before taxes Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow. (2) LIFO cost flow, and (3) weighted-average cost flow b. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) Req A Req B1 Req B2 Reg B3 Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted- Eaverage cost flow. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.). FIFO LIFO Weighted Average Dost of goods sold Ending inventory Ch Reg A GED Reg B1 Reg B2 Reg B3 Use a vertical model to show the Year 2 income statement under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Income Statements For the Year Ended December 31, Year 2 FIFO LIFO Weighted Average Salaries expense Income before tax 0 0 Use a vertical model to show the Year 2 balance sheet under FIFO, LIFO, and weighted average. (Do not round intermedi calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Balance Sheets As of December 31, Year 2 FIFO LIFO Weighted Average Assets 0 $ 0 $ 0 Total assets Stockholders' equity Total stockholders' equity $ 0 $ 0 $ 0 WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 2 FIFO LIFO Weighted Average Cash flows from operating activities 0 0 Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 0 0 $ Ending cash balance 0 $ 0 0 $ Step by Step Solution
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