The management of Bridgeport Corp. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting records show these data.
Inventory, January 1 (9,030 units)$ 28,896Cost of 123,680 units purchased447,935Selling price of 96,350 units sold764,600Operating expenses112,900
Units purchased consisted of 36,290 units at $3.40 on May 10; 54,240 units at $3.60 on August 15; and 33,150 units at $3.90 on November 20. Income taxes are 28%.
(a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO.