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

Cash $ 16,900 Beginning inventory 13,775 (145 units @ $95) Common stock 15,200 Retained earnings 15,475

The following five transactions occurred in Year 2: First purchase (cash): 120 units @ $97 Second purchase (cash): 200 units @ $105 Sales (all cash): 425 units @ $189 Paid $13,300 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.