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The following five transactions occurred in Year 2 : 1. First purchase (cash) 115 units $91 2. Second purchase (cash) 195 units $999 3. Sales
The following five transactions occurred in Year 2 : 1. First purchase (cash) 115 units $91 2. Second purchase (cash) 195 units $999 3. Sales (all cash) 355 units $200 4. Pald $13,400 cosh 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) FFO cost flow, (2) LIFO cost flow, and (3) weighted-averag flow. b. Use a vertical model to show the Year 2 income statement, bolance 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. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weightedaverage cost flow. (Do not round intermediate caiculations. Round your answers to nearest whole dollar amount.)
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