The accounting records of Walls China Shop reflected the following balances as of January 1, Year 3:

Cash	$	17,400
Beginning inventory		18,060		(210 @ $86)
Common stock		16,000
Retained earnings		19,460

The following five transactions occurred in Year 3:

1. First purchase (cash): 125 units @ $88
2. Second purchase (cash): 200 units @ $96
3. Sales (all cash): 365 units @ $194
4. Paid $15,500 cash for salaries expense
5. 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. Compute the income tax expense for each method. 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. Required A Required B1 Required B2 Required B3 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. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of goods sold Ending inventory