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

Cash	$ 20,000
Beginning inventory	12,615	(145 units @ $87)
Common stock	14,300
Retained earnings	18,315

The following five transactions occurred in Year 2:

First purchase (cash): 125 units @ $89

Second purchase (cash): 200 units @ $97

Sales (all cash): 425 units @ $194

Paid $15,900 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.

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

Req A

Req B1 General Journal

Req B1 T Accounts

Req B2 General Journal

Req B2 T Acccounts

Req B3 General Journal

Req B3 T Accounts

Req C

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
	0	0	0
	0	0	0
	$0	$0	$0

Record the Year 2 transactions in T-accounts assuming FIFO cost flow. Assume perpetual inventory system is used. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)

Record the Year 2 transactions in T-accounts assuming FIFO cost flow. Assume perpetual inventory system is used. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)

Record the Year 2 transactions in T-accounts assuming FIFO cost flow. Assume perpetual inventory system is used. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)

Req B1 T Accounts

Record the Year 2 transactions in T-accounts assuming FIFO cost flow. Assume perpetual inventory system is used. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)