P$7\mathrm{.}4($Algo$)$ Analyzing and Interpreting Income Manipulation Under the LIFO Inventory Method L$07-2,7-$

$3$

$[$The following information applies to the questions displayed below.$]$

Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory

records reflected the following:

Inventory is valued at cost using the LIFO inventory method.

P$7-4$ Part $2$

The management, for various reasons, is considering buying $21$ additional units before December $31$ year$-$end at $$9,560$ each.

Restate the income statement $($and ending inventory$),$ assuming that this purchase is made on December $31.$ Assume the LIFO method

and the periodic inventory system are used by the company.