The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2.

Cash	$ 19,100
Beginning inventory	13,200	(150 units @ $88)
Common stock	14,300
Retained earnings	18,000

The following five transactions occurred in Year 2:

1. First purchase (cash): 115 units @ $90
2. Second purchase (cash): 200 units @ $98
3. Sales (all cash): 415 units @ $197
4. Paid $13,350 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 (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. Compute the income tax expense for each method. b. Record the above transactions in general journal 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 flows under FIFO, LIFO, and weighted average.

Reg B1 Req B2 Req B1 T General Req A Reg B3 Reg B2 T General Req BIT Accounts General Journal ACCCounts Journal Regc Journal Accounts Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted- average cost flow. Compute the income tax expense for each method. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.) Cost of Goods Sold Ending Inventory FIFO LIFO Weighted average WALL'S CHINA SHOP Computation of Income Tax Expense and Net Income FIFO LIFO Weighted Average Req A Req B1 General Journal >