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-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

-Record the above transactions in general journal form assuming FIFO cost flow. Assume perpetual incentory system is used.

-Record the year 2 transactions in T accounts assuming FIFO cost flow

-Record the above transactions in general journal form assuming weighted average cost flow

-record the year 2 transactions in T accounts assuming weighted average cost flow

-Use vertical model to show the year 2 income statemet, balance sheet, and statement of cash flows under FIFO, LIFO and weighted average

es 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 $ 18,500 12,760 (145 units @ $88) 15,900 15,360 The following five transactions occurred in Year 2: 1. First purchase (cash): 120 units @ $90 2. Second purchase (cash): 195 units @ $98 3. Sales (all cash): 415 units @ $195 4. Paid $16,350 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes Ch 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. Record the above transactions in general journal form and post to T-accounts assuming each of the cost flows listed. Assume perpetual inventory system is used. 1. FIFO 2. LIFO 3. Weighted Average c. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average

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