On December 1, 2017, Waylon Company had the account balances shown belo

	Debit	Credit
Cash	4,800	1,500
Accounts Receivable	3,900	3,000
Inventory	1,800	10,000
Equipment	21,000	17,000
	31,500	31,500

(3,000 units x $0.60)

The following transactions occurred during December:*(3,000 units X $0.60)

Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.72 per unit.

5 Sold 4,400 units of inventory on account for $0.90 per unit. (Waylon sold 3,000 of the $0.60 units and 1,400 of the $0.72.)

7 Granted the Dec. 5 customer $180 credit for 200 units of inventory returned costing $144. These units were returned to inventory.

17 Purchased 2,200 units of inventory for cash at $0.80 each.

22 Sold 2,000 units of inventory on account for $0.95 per unit. (Waylon sold 2,000 of the $0.72 units.)

Adjustment Data:

Accrued salaries and wages payable $400.

Depreciation on equipment $200 per month.

Income tax expense was $215, to be paid next year.

INSTRUCTIONS:

1) Prepare an adjusted trial balance as of December 31, 2017.

2) Prepare all necessary Closing Entries as of December 31, 2017

3) Compute ending inventory and cost of goods sold under FIFO, assuming Waylon Company uses the periodic inventory system.

4) Compute ending inventory and cost of goods sold under LIFO, assuming Waylon Company uses the periodic inventory system.