The board of directors of Ichiro Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available.
| Sales |
20,600 |
units @ |
$58 |
| Inventory, January 1 |
6,430 |
units @ |
23 |
| Purchases |
6,860 |
units @ |
26 |
| 10,300 |
units @ |
29 |
| 7,710 |
units @ |
35 |
| Inventory, December 31 |
10,700 |
units @ |
? |
| Operating expenses |
$233,600 |
Prepare a condensed income statement for the year on both bases for comparative purposes.