Givoly Incorporated 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		7,000	$ 11
For the current year:
Purchase, March 5		19,000	9
Purchase, September 19		10,000	5
Sale ($28 each)		8,000
Sale ($30 each)		16,000
Operating expenses (excluding income tax expense)	$ 400,000

Required:

Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.

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

Which inventory costing method may be preferred for income tax purposes?

Answer is not complete. Complete this question by entering your answers in the tabs below. Compute the difference between the pretax income and the ending inventory amounts for the two cases