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The accounting records of Walls China Shop reflected the following balances as of January 1, Year 2: Cash $ 80,100 Beginning inventory 33,000 (220 units

The accounting records of Walls China Shop reflected the following balances as of January 1, Year 2:

Cash $ 80,100
Beginning inventory 33,000 (220 units @ $150)
Common stock 50,000
Retained earnings 63,100

The following five transactions occurred in Year 2:

First purchase (cash) 150 units @ $155

Second purchase (cash) 160 units @ $160

Sales (all cash) 410 units @ $320

Paid $38,000 cash for salaries expense

Paid cash for income tax at the rate of 25 percent of income before taxes

Required

Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow.

Use a vertical model to show the Year 2 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.)

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