Q5

The management of Wildhorse Co. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data. Inventory, January 1 (15,000 units) Cost of 131,000 units purchased Selling price of 96,000 units sold Operating expenses $ 45,000 446,400 734,000 120,000 Units purchased consisted of 40,000 units at $3.20 on May 10; 61,000 units at $3.40 on August 15; and 30,000 units at $3.70 on November 20. Income taxes are 28%. (a) Prepare comparative condensed income statements for 2022 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.) Wildhorse Co. Condensed Income Statements FIFO LIFO $ $ $ $