Suppose that Old Navy uses the periodic inventory system and had the following inventory information available:

A physical count of inventory on December $31$ revealed that there were $308$ units on hand.

Answer the following independent questions.

Assume that the company uses the FIFO method. The cost of the ending inventory at

December $31$ is

Assume that the company uses the average$-$cost method. The cost of the ending

inventory on December $31$ is

$

$

$

$

$($a$)$ Determine the difference in the amount of income that the company would have

reported if it had used the FIFO method instead of the LIFO method

$($b$)$ Would income have been greater or less?