The accounting records of clear photography inc, reflected the folllowing balances as of january 1, 2012.
Cash- 18,000
Beginning inventory- 13,500 (150 units @ 90)
common stock- 15,000
retained earnings- 16,500
The following five transactions occurred in 2012.
1.) First purchase (cash) 120 units @ $92
2.) Second purchase (cash) 200 units @100
3.) sales (all cash) 300 @ $185
4.) paid $15,000 cash for operating expenes.
5.) Paid cash for income tax at the rate of 40 percent of income before taxes.
required. computer the cost of golds sold and ending inventory, assuming
1) fifo cost flow, 2) lifo cost flow, and 3) weighted average.
2.) use a vertical method to prepare the 2012 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average.