Jan. 1	Beginning Inventory	300 units @	$	37
Apr. 1	Purchased	2,900 units @	$	42
Oct. 1	Purchased	500 units @	$	45

During 2016, Parvin sold 3,500 units of inventory at $80 per unit and incurred $46,000 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $84,000, inventory of $11,100, common stock of $59,000, and retained earnings of $36,100.

References

Section BreakExercise 5-6A Income tax effect of shifting from FIFO to LIFO LO 5-1

6.

value: 5.00 points

Required information

Exercise 5-6A Part b

b.	Prepare income statements using FIFO and LIFO.