Dell Computer Company produces computers. The following data and descriptions are from the company's annual report ($ in millions):

	February 3	January 28
	2012	2011
Inventories	1,404	$1,303

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Assume that Dell uses the periodic inventory system. Suppose a Division of Dell had the accompanying data concerning the purchase and resale of computers ($ are not in millions):

	Units	Total
Inventory (January 28, 2011)	100	$40,000
Purchase (February 20, 2011)	200	100,000
Sales March 17, 2011 at $900 per unit)	150
Purchase (June 25, 2011)	160	96,000
Sakes November 7, 2011 (at $1,000 per unit)	160

1. For these computers only, prepare a tabulation of the cost of goods sold section of the income statement for the year ended February 3, 2012. Support your tabulation. Show your tabulation for four different methods: (a) FIFO, (b) LIFO, (c) average cost known as weighted-average for periodic inventory systems, and specific identification. For requirement (d), assume that the purchase of February 20 was identified with the sale of March 17. Also assume that the sale of November 7 included the sale half of the units in beginning inventory and the remainder from the purchase of June 25.

2. By how much would income taxes differ if Dell used (a) LIFO instead of FIFO for this inventory item and (b) LIFO instead of weighted- average? Assume a 40% tax rate.