Problem 6-4A

The management of Tamarisk, Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting records show these data.

Inventory, January 1 (10,130 units)$33,429Cost of109,460 units purchased399,385Selling price of105,180 units sold813,000Operating expenses123,850

Units purchased consisted of38,330units at $3.50on May 10;64,300units at $3.70on August 15; and6,830units at $4.00on November 20. Income taxes are30%.

(a)Prepare comparative condensed income statements for 2017 under FIFO and LIFO.(Round answers to 0 decimal places, e.g. 5,125.)