The Brick Company had cash sales of $220,700 for Year 1, its first year of operation. On April 2, the company purchased 153 units of inventory at $155 per unit. On September 1, an additional 115 units were purchased for $171 per unit. The company had 62 units on hand at the end of the year. The companys income tax rate is 40 percent. All transactions are cash transactions.

1. Compute net income using FIFO. 2. Compute net income using LIFO.