The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2:

Cash	$	19,000
Beginning inventory		12,900	(150 units @ $86)
Common stock		14,500
Retained earnings		17,400

The following five transactions occurred in Year 2:

1. First purchase (cash) 115 units @ $88
2. Second purchase (cash) 195 units @ $96
3. Sales (all cash) 415 units @ $191
4. Paid $13,300 cash for salaries expenses.
5. Paid cash for income tax at the rate of 40 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. Record the above transactions in general journal form and post to T-accounts assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. 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.

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. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)

	Cost of Goods Sold Ending Inventory FIFO LIFO Weighted Average WALL's CHINA SHOP Computation of Income Tax Expense and Net Income FIFO LIFO Weighted Average 0 0 0 0 0 0 $0 $0 $0

Record the above transactions in general journal form assuming FIFO cost flow. Assume perpetual inventory system is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)

Journal entry worksheet

• Record entry merchandise inventory purchased for cash.

Note: Enter debits before credits.

	Event General Journal Debit Credit 01

Record the above transactions in post to T-accounts assuming FIFO cost flow. Assume perpetual inventory system is used. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)

	Cash Merchandise Inventory Beg. Bal Beg. Bal End. Bal End. Bal Common Stock Retained Earnings Beg. Bal Beg. Bal End. Bal End. Bal Sales Revenue Cost of Goods Sold Beg. Bal Beg. Bal End. Bal End. Bal Salaries Expense Income Tax Expense Beg. Bal Beg. Bal End. Bal End. Bal