Grouper Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Purchases Cost of Goods Sold Ending Inventory Date Oct. 2 Units 8,700 Cost Total Units Cost Total Units Cost Total 15 14,500 $12 14 $104,400 8,700 $12 $104,400 203,000 [1] [2] [3] [4] [5] 29 19,800 [6] [7] [8] [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 Sales $555,000 Average $555,000 Cost of goods sold Gross profit Operating expenses 186,000 186,000 Income before income tax Income tax expense (30%) Net income