asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2014, the accounting records show these data.

Inventory, January 1 (10,000 units)		$ 35,000
Cost of 119,000 units purchased		467,240
Selling price of 97,800 units sold		754,300
Operating expenses		129,000

Units purchased consisted of 34,500 units at $3.70 on May 10; 59,400 units at $3.90 on August 15; and 25,100 units at $4.30 on November 20. Income taxes are 30%.

Condensed Income Statements For the Year Ended December 31, 2014 FIFO LIFO CS Cost of Goods Sold Beginning Inventory Cost of Goods Purchased Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income before Income Taxes Income Tax Expense Net Income / (Loss)