Help Sa The accounting records of Wall\'s China Shop reflected the following bal

Question

Help Sa The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 3 Cash $16,000 Beginning inventory 17,630 (205 units 86) Common stock 15,700 17,930 ok Retained earnings The following five transactions occurred in Year 3: 1 First purchase (cash): 125 units@$88 2 Second purchase (cash): 200 units$96 nces 3. Sales (all cash): 360 units$192 4. Paid $14,050 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. Compute the income tax expense for each method. b. Use a vertical model to show the Year 3 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. Required A Required B1 Required B2 Required 83 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. (Do not round intermediate calculations. Round your answers to nearest whole dolilar amount.) FIFO LIFOAverage

Explanation / Answer

Statement showing cost of goods sold and closing inventory

Income Statement

Balance Sheet

Thank You

Particulars FIFO LIFO Weighted Average opening stock 17630 17630 17630 Add:Purchases 30200(125*88)+(200*96) 30200 30200 Total 47830 47830 47830 Sales 69120 (360*192) 69120 69120 Cost of goods sold 31510 (205*86)+(125*88)+(30*96) 33210 (200*96)+(125*88)+(35*86) 32488 (47830/530*360) Closing Stock 16320 (170*96) 14620 (170*86) 15342 (47830/530*170)

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