Blue Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Date Oct. 2 Cost of Goods Sold Units Total Cost Units 9.000 15,000 Purchases Cost Total $13 $117.000 17 255,000 Ending Inventory Cost Total $13 $117,000 [2] [4] [5] Units 9,000 [1] [3] 15 29 22,400 [6] [8] [7] [9] [10] [11] [12] [13] The company accountant has prepared the following partial statement of income to help management understand the financial statement impact of each cost determination cost formula. FIFO $558,000 Average $558,000 Sales Cost of goods sold Gross profit Operating expenses Income before income tax Income tax expense (30%) Net income 202.000 202,000