On January 1, the merchandise inventory of Revsine Retail Store consisted of 1,000 units acquired for \(\$ 450\) each. During the year, 2,500 additional units were acquired at an average price of \(\$ 600\) each while 2,300 units were sold for \(\$ 800\) each. The replacement cost of these units at the time they were sold averaged \(\$ 600\) during the year. The replacement cost of units on December 31 was \(\$ 700\) per unit.

a Calculate cost of goods sold under both FIFO and LIFO cost-flow assumptions.

b Prepare partial statements of income showing gross margin on sales as revenues less cost of goods sold with both FIFO and LIFO cost-flow assumptions.

c Prepare partial income statements separating the gross margin on sales into operating margins and realized holding gains under both FIFO and LIFO.

d Append to the bottom of the statements prepared in part \(\mathbf{c}\) a statement showing the amount of unrealized holding gains and the total of realized income plus unrealized holding gains.

e If you did the above steps correctly, the totals in part d are the same for both FIFO and LIFO. Is this equality a coincidence? Why or why not?