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At the end of January 2018, the records of Regina Company showed the following for a particular item that sold at $18 per unit: Amount $2,500 Transactions Inventory, January 1, 2018 Sale, January 10 Purchase, January 12 Sale, January 17 Purchase, January 26 Units 500 (400) 600 (300) 160 3,600 1,280 ods: (a) weighted this method. Fle was out Required: 1. Assuming the use of a perpetual inventory system, prepare a summarized statement through gross profit on sales under each of the following inventory costing methods: (a) weighted average cost, (b) FIFO, and (c) specific identification, assuming that the company is permitted to use this method. For specific identification, assume that the first sale was out of the beginning inventory and the second sale was out of the January 12 purchase. (Round your intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) REGINA COMPANY Partial Statement of Earnings For the Month Ended January 31, 2018 (a) (b) Weighted- Average Cost (c) Specific Identification FIFO 2a. Which method would result in the highest pretax earnings? O FIFO O Weighted average cost O Specific identification 2b. Which method would result in the lowest income tax expense? Weighted average cost O FIFO O Specific identification 2c. Which method would result in the most favourable cash flow? O Weighted average cost O Specific identification O FIFO 3. Prepare journal entries to record the transactions that occurred in January 2018. Assume that FIFO is used for inventory costing, and that all sale and purchase transactions are on account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record sales on account. 2 Record cost of sales on goods sold on account. 3 Record purchase of goods on account. 4. Record sales on account. 5 Record cost of sales on goods sold on account. Credit 6 Record purchase of goods on account. Note : = journal entry has been entered Record entry Clear entry View general journal

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