The accounting records of wall's china shop reflected the following balances as of january 1, year 2: cash $ 80,100 beginning inventory 33,000 (220 units @ $150) common stock 50,000 retained earnings 63,100 the following five transactions occurred in year 2: first purchase (cash) 150 units @ $155 second purchase (cash) 160 units @ $160 sales (all cash): 410 units @ $320 paid $38,000 cash for salaries expense 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. 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.

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

                        FIFOLIFOWA    

Sales                131.200131.200131.200    

Cost of goods626506385063.317,92    

Gross profit          68.55067.35067.882    

Salaries                  380003800038000    

EBiT                  30.55029.35029.882    

Income tax             637,57337,57470,518868    

net Income            22.91322.01322.412

b. Record the above transactions in general journal form

1        

Db Inventory23250      

Cr Cash             23250      

Purcahse 1        

2        

Db Inventory25600      

Cr Cash               25600      

Purchase 2        

3        

Db Cash131200      

Cr revenue  131200      

Sales        

4        

Db Cost of goods62650      

Cr Inventory                62650      

Cost of goods  

Explanation:

                           UnitsCostPriceCostPrice  

Begining Inventory220  150               33.000    

purchase 1                  150155                33.250    

purchase 2                  160160      

Sales                          410320  131.200  

FIFO                  UnitsCostSalePriceCostPriceCost

Begining Inventory 220150               220  33.000      33000

purchase 1          150155150  23.250  23250

purchase 2        16016040  25.600  6400

Sales                                   410320  131.20062650

 0    

LIFO                    UnitsCost Sale Price CostPriceCost of g

Begining Inventory220150100  33.000  15000

purchase 1                  150155150  23.250  23250

purchase 2                 160160160  25.600  25600

Sales                                     410320  131.20063850

 0    

WA                           UnitsCost Sale Price CostPriceCost of g.

Begining Inventory2201500  33.000  0

purchase 1                  1501550  23.250  0

                                370152  56.250  

purchase 2                 1601600  25.600  0

                                530154410  81.850  63.317,92

Sales           410320                  131.200    

   FIFOLIFOWA    

Sales131.200131.200131.200    

Cost of goods626506385063.317,92    

Gross profit68.55067.35067.882    

Salaries380003800038000    

EBiT30.55029.35029.882    

Income tax7637,57337,57470,518868    

net Income22.91322.01322.412    

1        

Db Inventory23250      

Cr Cash             23250      

Purcahse 1        

2        

Db Inventory25600      

Cr Cash               25600      

Purchase 2        

3        

Db Cash131200      

Cr revenue  131200      

Sales        

4        

Db Cost of goods62650      

Cr Inventory                62650      

Cost of goods        

answer; specific performance;