The management of Metlock, 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 2022 if either the FIFO or the LIFO method had been used. For 2022, the accounting records show these data:

The management of Metlock, 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 2022 if either the FIFO or the LIFO method had been used. For 2022, 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) 727,500 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 1 75,000 $ 2.30 $ 172,500 2 60,000 2.45 147,000 3 60,000 2.60 156,000 4 90.000 2.80 252,000 285,000 $ 727,500 Operating expenses were $ 130,000, and the company's income tax rate is 40%. Prepare comparative condensed income statements for 2022 under FIFO and LIFO. Metlock, Inc. Condensed Income Statements For the Year Ended December 31, 2022 V FIFO LIFO Sales Revenues $ 1120500 $ 1120500 Cost of Goods Sold Beginning Inventory 21000 21000 Cost of Goods Purchased Cost Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit/(Loss) Gross Profit/(Loss) Operating Expenses 130000 130000 Income before Income Taxes Income Tax Expense Net Income /(Loss) ta $ ta