Scoresby Inc. uses a perpetual inventory system. At December 31, 2018, the company's accounting records provided the following information for Product B: Unit Units Cost 7,000 $8 9 Transactions a. Inventory, December 31, 2017 For the year 2018: b. Purchase, March 5 c. Sale, June 15 ($29 each) d. Purchase, September 19 e. Sale, November 20 ($31 each) f. Operating expenses (excluding income tax expense), $500,000 19,000 10,000 8,000 16,000 11 Required: 1. Prepare a statement of earnings for 2018 through pretax earnings, showing the detailed computation of cost of sales for two cases: (Round intermediate calculations to 2 decimal places.) a. Case A-FIFO b. Case BWeighted average. SCORESBY, INC. Statement of Earnings (Partial) For the Year Ended December 31, 2018 Case A Case B FIFO Weighted Average Cost of sales: 2. Compare the two cases with regard to the pretax earnings and the ending inventory amounts. Comparison of Amounts Case A Case B Weighted FIFO Average Pretax earnings Difference Ending Inventory Difference 4. Prepare journal entries to record transactions (b) through (e), assuming 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.) View transaction list Journal entry worksheet 12 3 3 4 5 6 7 > Record the entry for purchase of inventory. Note: Enter debits before credits. General Journal Debit Credit Transaction b