Q1 Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:

Units	Unit Cost
Inventory, December 31, prior year	1,820		$	8
For the current year:
Purchase, March 21	6,110			7
Purchase, August 1	4,010			5
Inventory, December 31, current year	2,980

Required:

Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 4 decimal places and final answers to nearest whole dollar amount.)

	FIFO	LIFO	Average Cost
Ending Inventory
Cost of goods sold

Q2-3 Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:

		Units			Unit Cost
Inventory, December 31, prior year				7,900			$	11
For the current year:
Purchase, March 5				19,900				9
Purchase, September 19				10,900				5
Sale ($27 each)				8,900
Sale ($29 each)				16,900
Operating expenses (excluding income tax expense)	$	409,000

2. Compute the difference between the pretax income and the ending inventory amounts for the two cases.

	Comparison of Amounts
	Case A	Case B
	FIFO	LIFO	Difference
Pretax Income
Ending Inventory

3. Which inventory costing method may be preferred for income tax purposes?

Which inventory costing method may be preferred for income tax purposes?