Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:

		Units			Unit Cost
Inventory, December 31, prior year				2,880			$	11
For the current year:
Purchase, April 11				8,820				9
Purchase, June 1				7,950				14
Sales ($58 each)				10,820
Operating expenses (excluding income tax expense)	$	186,500

Required:

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.

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

Please show your workings. Thanks.