Lunar Company uses a perpetual inventory system. The companys accounting records provided the following information for Product 2

Lunar Company uses a perpetual inventory system. The company's accounting records provided the following information for Product 2: Required: 1. Prepare a statement of earnings for 2020 , through pretax earnings, showing the detailed computation of cost of sales for two cases: a. Case AFIFO b. Case B-Weighted average (Round intermediate calculations to 2 decimal places.) 2. Calculate the pretax earnings and the ending inventory amounts between the two cases. 3. Which inventory costing method may be preferred for income tax purposes? FIFO Weighted Average 4. Prepare journal entries to record transactions (b) through (e), assuming that all sales and purchase transactions are on account and 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.)