The accounting records of Wall's China Shop reflected the following balances as of January 1, Year...
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The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash Beginning inventory Common stock Retained earnings $19,400 18,800 (200 units @ $94) 14,400 23,800 The following five transactions occurred in Year 2: 1. First purchase (cash) 115 units @ $96 2. Second purchase (cash) 200 units @ $104 3. Sales (all cash) 345 units @ $200 4. Paid $15,700 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. b. 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.) Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req 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. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) Cost of goods sold Ending inventory FIFO LIFO Weighted Average < Req A Req B1 > The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash Beginning inventory Common stock Retained earnings $19,400 18,800 (200 units @ $94) 14,400 23,800 The following five transactions occurred in Year 2: 1. First purchase (cash) 115 units @ $96 2. Second purchase (cash) 200 units @ $104 3. Sales (all cash) 345 units @ $200 4. Paid $15,700 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. b. 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.) Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req 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. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) Cost of goods sold Ending inventory FIFO LIFO Weighted Average < Req A Req B1 >
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Answer Req A Cost of Goods Sold and Ending Inventory We need to calculate the cost of goods sold COG... View the full answer
Related Book For
Survey of Accounting
ISBN: 978-1259631122
5th edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
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