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The accounting records of Carrols Lamp Shop reflected the following balances as of January 1, 2014: Cash $ 90,500 Beginning inventory 28,000 (200 units @
The accounting records of Carrols Lamp Shop reflected the following balances as of January 1, 2014: |
Cash | $ | 90,500 | ||
Beginning inventory | 28,000 | (200 units @ $140) | ||
Common stock | 40,000 | |||
Retained earnings | 78,500 | |||
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The following five transactions occurred in 2014: | |
1. | First purchase (cash) 120 units @ $150 |
2. | Second purchase (cash) 140 units @ $160 |
3. | Sales (all cash) 400 units @ $320 |
4. | Paid $40,000 cash for salaries expense. |
5. | Paid cash for income tax at the rate of 25 percent of income before taxes. |
Required | |
a. | Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. b. prepare the 2014 income statement under FIFO, LIFO, and weighted average. c. prepare the 2014 balance sheet under FIFO, LIFO, and weighted average d. prepare the 2014 statement of cash flows under FIFO, LIFO, and weighted average
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