Lunar Company uses a perpetual inventory system. The company's accounting records provided the following information for Product 2: Units 4,500 Unit Cost $12 1 0 Transactions a. Inventory, December 31, 2016 For the year 2017: b. Purchase, April 11 c. Sale, May 1 ($30 each) d. Purchase, June 1 e. Sale, July 3 ($30 each) f. Operating expenses (excluding income tax expense), $86,500 10,500 6,500 9,500 7,500 Required: 1. Prepare a statement of earnings for 2017, through pretax earnings, showing the detailed computation of cost of sales for two cases: a. Case A-FIFO b. Case BWeighted average (Round intermediate calculations to 2 decimal place.) LUNAR COMPANY Statement of Earnings (Partial) For the Year Ended December 31, 2017 Case A FIFO Case B Weighted Average $ 420,000 $ 420,000 54,000 228,500 282,500 28 Sales revenue Cost of sales: Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of sales Gross profit Expenses Pretax earnings 54,000 228,500 282,500 133,500 149,000 271,000 86,500 184,500 282,500 137,500 86,500 51,000 $ $