The board of directors of Ichiro 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

21,400 units

$70

Inventory, Jan 1

6,620 units

28

Purchases

6,350

units

31

10,400

units

35

7,180

units

42

Inventory, December 31

9,150

units

?

Operating Expenses

280, 200

Prepare a condensed income statement for the year on both bases for comparative purposes.

How do i Solve COGS for FIFO and LIFO on the income statement?