The accounting records of Wall's China Shop reflected the following balances as of January $1,$ Year $3$:

The following five transactions occurred in Year $3$:

First purchase $($cash$)$: $120$ units @ $$93$

Second purchase $($cash$)$: $200$ units @ $$101$

Sales $($all cash$)$: $365$ units @ $$196$

Paid $$14,550$ cash for salaries expense.

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$.$ Use a vertical model to show the Year $3$ income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and

weighted average. $($Hint: Record the events under an accounting equation before preparing the statements.$)$

Complete this question by entering your answers in the tabs below.

Req A

Req B$1$

Req B$2$

Req B$3$

Use a vertical model to show the Year $3$ income statement under FIFO, LIFO, and weighted average.

Note: Do not round intermediate calculations. Round your answers to nearest whole dollar amount.

WALL'S CHINA SHOP

Income Statements

For the Year Ended December $31$ Year $3$