The following information pertains to the inventory of Parvin Company during Year 2:

Jan. 1	Beginning Inventory	400	units	@	$	30
Apr. 1	Purchased	2,150	units	@	$	35
Oct. 1	Purchased	600	units	@	$	38

During Year 2, Parvin sold 2,900 units of inventory at $90 per unit and incurred $47,000 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $86,000, inventory of $12,000, common stock of $61,000, and retained earnings of $37,000.

Exercise 5-6A Part b

b. Prepare income statements using FIFO and LIFO. \

FIFO
COST OF GOODS SOLD
COST OF GOODS SOLD
LIFO
COST OF GOODS SOLD
COST OF GOODS SOLD		0
		0
		0
		$0