The management of Felipe Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2017 if either the FIFO or the LIFO method had been used. For 2017, the accounting records show these data:

Inventories				Purchases and Sales
Beginning (10,500 units)		$21,000		Total net sales (270,000 units)		$1,120,500
Ending (25,500 units)				Total cost of goods purchased (285,000 units)		656,250

Purchases were made quarterly as follows.

Quarter		Units		Unit Cost		Total Cost
1		75,000		$2.05		$153,750
2		60,000		2.20		132,000
3		60,000		2.35		141,000
4		90,000		2.55		229,500
		285,000				$656,250

Operating expenses were $130,000, and the companys income tax rate is 40%.