Income is to be evaluated under four different situations as follows:

a. Prices are rising:

(1) Situation A: FIFO is used.

(2) Situation B: LIFO is used.

b. Prices are falling:

(1) Situation C: FIFO is used.

(2) Situation D: LIFO is used.

The basic data common to all four situations are: sales, 517 units for $18,612; beginning inventory, 295 units; purchases, 386 units; ending inventory, 164 units; and operating expenses, $4,000. The income tax rate is 30%.

Required: 1. Complete the following tabulation for each situation in Situations A and B (prices rising), assume the following: beginning inventory, 295 units at $11 = $3,245; purchases, 386 units at $12 = $4,632. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 295 units at $12 = $3,540; purchases, 386 units at $11 = $4,246.Use periodic inventory procedures.(Round your answers to nearest dollar amount.)

	PRICES RISING		PRICES FALLING
	Situation A	Situation B	Situation C	Situation D
	FIFO	LIFO	FIFO	LIFO
Sales revenue	$18,612	$18,612	$18,612	$18,612
Cost of goods sold:
Beginning inventory	3,245	3,245	3,540	3,540
Purchases	4,632	4,632	4,246	4,246
Goods available for sale	7,877	7,877
Ending inventory	1,968
Cost of goods sold	5,909
Gross profit	12,703
Expenses	4,000	4,000	4,000	4,000
Pretax income	8,703
Income tax expense	2,611
Net income	$6,092