The accounting records of Steve's China shop reflected the following balances as of January 1, Year XXX1.
Cash			$18,100
Beginning inventory			$18,800	(200 units @ $94)
Common stock			$15,200
Retained earnings			$21,700
The following five transactions occurred in the year XXX1.
1	On March 1st, Steve purchased 120 units @ a unit price of $96. It was a cash purchase.
2	On May 15th, Steve purchased 195 units @ $104. Payment was made in cash for the purchase.
3	On September 18th, Steve sold 350 units @ $189 per unit for cash.
4	On 15th December, $15,350 was paid in cash to employees for salaries expense.
5	On December 31st, Steve paid income tax @ 25% income tax rate by cash.
For convenience, assumethat the company had no other revenue or expense other than what was given above.
Required: a) Compute the cost of goods sold and the cost of ending inventory using (i) FIFO cost flow, (ii) LIFO cost flow and (iii) weighted average cost flow (7.5 points). b) Compute the income tax expense under (i) FIFO cost flow, (ii) LIFO cost flow and (iii) weighted average cost flow (4.5 points).