The management of Gresa 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 (7,000units)$14,000Total net sales (223,000units)$992,350Ending (14,000units)Total cost of goods purchased (230,000units)572,000

Purchases were made quarterly as follows.

Quarter

Units

Unit Cost

Total Cost

160,000

$2.30$138,000

250,000

2.40120,000

350,000

2.50125,000

470,000

2.70189,000

230,000

$572,000