The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2.$ 16,40013,760 (160 units @ $86)14,00016,160The following five transactions occurred in Year 2:1. First purchase (cash): 115 units @ $882. Second purchase (cash): 195 units @ $96CashBeginning inventoryCommon stockRetained earnings3. Sales (all cash): 410 units @ $1934. Paid $13,650 cash for salaries expenses5. Paid cash for income tax at the rate of 40 percent of income before taxesRequireda. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow. (2) LIFO cost flow, and (3) weighted average costflow. Compute the income tax expense for each method.

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 The following five transactions occurred in Year 2: 1. First purchase (cash): 115 units @ $88 2. Second purchase (cash): 195 units @ $96 $ 16,400 13,760 (160 units @ $86) 14,000 16,160 3. Sales (all cash): 410 units @ $193 4. Paid $13,650 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes Required Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost low. Compute the income tax expense for each method

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 The following five transactions occurred in Year 2: 1. First purchase (cash): 115 units @ $88 2. Second purchase (cash): 195 units @ $96 $ 16,400 13,760 (160 units @ $86) 14,000 16,160 3. Sales (all cash): 410 units @ $193 4. Paid $13,650 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes Required Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost low. Compute the income tax expense for each method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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