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Record the Year 2 transactions in T-accounts assuming FIFO cost flow. Assume perpetual inventory system calculations to 3 decimal places. Round your final answers to
Record the Year 2 transactions in T-accounts assuming FIFO cost flow. Assume perpetual inventory system calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.) The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2 . The following five transactions occurred in Year 2 : 1. First purchase (cash): 125 units $90 2. Second purchase (cash): 200 units $98 3. Sales (all cash): 430 units 0$195 4. Paid $15,700 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes Required a. Compute the cost of goods sold and ending inventory, assuming (i) FFFO cost flow, (2) LIFO cost flow, and (3) weighted-overage cost flow. Compute the income tax expense for each method. b. Record the above transactions in general joumal form and post to T-accounts assuming each of the cost flows listed. Assume perpetual inventory system is used. 1. FIFO 2. LIFO 3. Weighted Average c. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash fows under FiFO, LIFO, and weighted average. Complete this question by entering your answers in the tabs below. Record the Year 2 transactions in T-accounts assuming flFo cost flow, Assume perpetual inventory system is vised. (Ahound interriediate. calculations to 3 decimal places: Round your finat answers to the nearest whale dollar armount.)
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