The board of directors of Wildhorse 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 20,000 units @ $59

Inventory, January 1 6,100 units @ 24

Purchases 5,600 units @ 26

10,200 units @ 30

7,600 units @ 35

Inventory, December 31 9,500 units @ ?

Operating expenses $236,000

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

Wildhorse Corporation

Condensed Income Statement

For the year ended December 31

First-in, first-out Last-in, first-out

$

$

:

$

$

$

$