The board of directors of Carla Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available. Sales 21,200 units @ $60 Inventory, January 1 6,200 units @ 24 Purchases 6,400 units @ 26 10,300 units @ 30 7,600 units @ 36 Inventory, December 31 9,300 units @ ? Operating expenses $240,000

Carla Corporation Condensed Income Statement For the year ended December 31 First-in, first-out Last-in, first-out Sales Revenue 1272000 1272000 Cost of Goods Sold Inventory, Jan. 1 148800 148800 Purchases 749000 749000 Cost of Goods Available 897800 897800 Inventory, Dec. 31 291600 582600 Cost of Goods Sold 606200 Gross Profit 471300 Operating Expenses 240,000 240,000 Net Income/ (Loss) 231300