Q1. Lobo Company merchandises a single product called Piel. The following data represent beginning inventory and purchases of Piel during the past year: January 1 inventory, 68,000 units at $11.00; February purchases, 80,000 units at $12.00; March purchases, 160,000 units at $12.40; May purchases, 120,000 units at $12.60; July purchases, 200,000 units at $12.80; September purchases, 160,000 units at $12.60; and November purchases, 60,000 units at $13.00. Sales of Piel totaled 786,000 units at $20.00 per unit. Selling and administrative expenses totaled $5,102,000 for the year, and Lobo Company uses a periodic inventory system. 1. Prepare a schedule to compute the cost of goods available for sale. 2. Compute income before income taxes under each of the following inventory cost flow assumptions: (a) The average-cost method (b) The FIFO method