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

Cash	$ 18,600
Beginning inventory	14,415	(155 units @ $93)
Common stock	14,000
Retained earnings	19,015

The following five transactions occurred in Year 2:

First purchase (cash): 125 units @ $95

Second purchase (cash): 205 units @ $103

Sales (all cash): 430 units @ $196

Paid $15,950 cash for salaries expenses

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.

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
Sales
Cost of goods sold
Gross margin
Salaries expense
Income before tax
Income tax expense
Net income