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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				7,400			$	12
For the current year:
Purchase, March 5				19,400				10
Purchase, September 19				10,400				6
Sale ($27 each)				8,400
Sale ($29 each)				16,400
Operating expenses (excluding income tax expense)	$	404,000

Required:

1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Loss amounts should be indicated with a minus sign.)

GIVOLY INC.
Income Statement
For the Year Ended December 31, current year
	Case A		Case B
	FIFO		LIFO
Sales revenue		$702,400		$702,400
Cost of goods sold:
Beginning inventory	$88,800		$88,800
Purchases	256,400		256,400
Goods available for sale	345,200		345,200
Ending inventory
Cost of goods sold
Gross profit
Operating expenses				404,000
Pretax income/loss