The Clayton Company sold 768,000 units at $20 per unit. Its beginning inventory on Jan 1 was 68000 units at $12.Purchases during the year were as follows: February 80,000units @$13

July 200,000units@ 12.80

March 160,000units @ $12.40

September 160,000units@$12.6

May 120,000 @$12.6

November60,000units@13.2

The companys selling and administrative costs for the year were $4,736,000 and the company uses the periodic inventory method. Required:

a. Prepare a schedule to compute the cost of goods available for sale.

b. Prepare an income statement under each of the following assumptions: Average cost basis and FiFO basis