value: 10.00 points Scoresby Inc. uses a perpetual inventory system. At December 31, 2018, the company's accounting records provided the following information for Product B: Units 7,000 Unit Cost $ 8 Transactions a. Inventory, December 31, 2017 For the year 2018: b. Purchase, March 5 c. Sale, June 15 ($29 each) d. Purchase, September 19 e. Sale, November 20 ($31 each) f. Operating expenses (excluding income tax expense), $500,000 19.000 10,000 8,000 16,000 Required: 1. Prepare a statement of earnings for 2018 through pretax earnings, showing the detailed computation of cost of sales for two cases: (Round intermediate calculations to 2 decimal places.) a. Case A-FIFO b. Case BWeighted average. SCORESBY, INC. Statement of Earnings (Partial) For the Year Ended December 31, 2018 Case A Case B FIFO Weighted Average Cost of sales: 2. Compare the two cases with regard to the pretax earnings and the ending inventory amounts. Comparison of Amounts Case A Case B FIFO Weighted Average Pretax earnings Difference Ending Inventory Difference 3. Which inventory costing method may be preferred for income tax purposes? O FIFO o Weighted average 4. Prepare journal entries to record transactions (b) through (e), assuming that Scoresby uses FIFO for inventory costing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prepare journal entries to record transactions (b) through (e), assuming that Scoresby uses FIFO for inventory costing. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the entry for purchase of inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry Clear entry View general journal