Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records provided the following information for product 2:

			Units			Unit Cost
Inventory, December 31, 2014				6,700			$	3
For the year 2015:
Purchase, March 5				18,700				7
Purchase, September 19				9,700				9
Sale ($26 each)				8,100
Sale ($28 each)				15,700
Operating expenses (excluding income tax expense)	$	497,000

1.	Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Loss amounts should be indicated with a minus sign.)

2.	Compute the difference between the pretax income and the ending inventory amount for the two cases.

pretax income

Ending inventory