Question

Check my work 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 $18,000 19,135 (215 units @ $89) 14,600 22,535 The following five transactions occurred in Year 2: 1. First purchase (cash) 120 units @ $91 2. Second purchase (cash) 205 units @ $99 3. Sales (all cash) 365 units @ $190 4. Paid $15,300 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. b. Use a vertical model to show the Year 2 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.

Please help me. This is all part of one question.

Answer 1

Cost of goods sold Inventory FIFO $ $ LIFO 33,025 $ 17,325 $ W. Avg 34,775 $ 34,033 15,575 $ 16,317

Available for sale Cost Total FIFO Cost of goods sold Cost Total Ending inventory Cost Total Date Unit Unit Unit Bal 1 120 $ 91 $ 10,920 215 $ 215 $ 120 $ 215 $ 120 $ 205 $ 89 $ 89 $ 91 $ 89 $ 91 $ 99 $ 99 $ 20,295 19,135 19,135 10,920 19,135 10,920 20,295 205 $ N 3 215 $ 120 $ 30 $ 89 $ 91 $ 99 $ $ 19,135 10,920 2,970 33,025 175 $ 99 $ $ 17,325 17,325 Purchases Unit Cost LIFO Cost of goods sold Cost Total Inventory in hand Cost Total Date Unit Unit Bal 1 120 $ 91 $ 10,920 215 $ 215 $ 120 $ 215 $ 120 $ 205 $ 89 $ 89 $ 91 $ 89 $ 91 $ 99 $ 19,135 19,135 10,920 19,135 10,920 20,295 2 205 $ 99 $ 20,295 3 205 $ 120 $ 40 $ 99 $ 91 $ 89 $ $ 20,295 10,920 3,560 34,775 175 $ 89 $ 15,575 $ 15,575

Purchases Unit Cost AVCO Cost of goods sold Cost Total Inventory in hand Cost Total Date Unit Unit Bal 215 $ 89 $ 19,135 1 120 $ 91 $ 10,920 335 $ 89.72 $ 30,055 2 205 $ 99 $ 20,295 540 $ 93.24 $ 50,350 3 365 $ 93.24 $ 34,033 175 $ 93.24 $ $ $ 34,033 16,317 16,317

Income Statement FIFO LIFO W. Avg Sales (365 x 190) Cost of goods sold Operating profit Salaries expense Income before tax Income tax Net Income $ 69,350 $ 69,350 $ 69,350 $ 33,025 $ 34,775 $ 34,033 $ 36,325 $ 34,575 $ 35,317 $ 15,300 $ 15,300 $ 15,300 $ 21,025 $ 19,275 $ 20,017 $ 5,256.25 $ 4,818.75 $ 5,004.35 $ 15,768.75 $ 14,456.25 $ 15,013.05 Balance Sheet FIFO LIFO W. Avg Assets Cash Inventory $ 35,578.75 $ 36,016.25 $ 35,830.65 $ 17,325.00 $ 15,575.00 $ 16,317.13 $ 52,903.75 $ 51,591.25 $ 52,147.78 Liablitty Common Stock Retained earnings $ 14,600.00 $ 14,600.00 $ 14,600.00 $ 38,303.75 $ 36,991.25 $ 37,548.05 $ 52,903.75 $ 51,591.25 $ 52,148.05

Statement of Cashflow FIFO LIFO W. Avg Operating activities Net income Change in inventory $ 15,768.75 $ 14,456.25 $ 15,013.05 $ 1,810 $ 3,560 $ 2,818 $ 17,578.75 $ 18,016.25 $ 17,830.92 $ $ $ $ $ $ Investing Activity Financing activity Cash @ beg Cash @ end $ 18,000 $ 18,000 $ 18,000 $ 35,578.75 $ 36,016.25 $ 35,830.92