Oculus is a proprietorship that produces a specialized type of round windows. It is after the fiscal year-end for 2018, and the owner has drafted the financial statements for the business for presentation to the bank and for tax purposes. The following provides a summary of those financial statements, along with comparative information for the prior year:

 Raw materials consist of glass and aluminum. Due to their nature, these inventories cannot be specifically identified. Consequently, Oculus has used the first-in, first-out (FIFO) method for all of its inventories. Oculus uses a periodic inventory system, and the above financial information has been prepared using FIFO. 

Input prices had been reasonably stable prior to 2017. However, as a result of rapidly rising prices for raw material inputs, the owner of Oculus feels that the FIFO method is overstating income. He wonders whether and by how much his financial results would change if he were to use the weighted-average cost method for inventories. To help address this issue, he has assembled additional information on the inventories for Oculus (raw material quantities are expressed in units equivalent to one standard finished window):

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Balances as at December 31 Cash Accounts receivable Inventories: raw materials Inventories: work in process Inventories: finished goods Other assets Total assets Total liabilities Contributed capital Retained earnings Total liabilities and equity For the year ended December 31 Sales Cost of goods sold Gross margin Operating expenses Net income 2018 $ 8,900 42,600 7,900 5,100 48,400 320,000 $432,900 $113,800 5,000 314,100 $432,900 2018 $561,000 321,200 $239,800 182,600 $ 57,200 2017 $ 7,600 40,900 5,500 6,200 29,400 310,000 $399,600 $137,900 5,000 256,700 $399,600 2017 $529,000 305,000 $224,000 178,300 $ 45,700