Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year 2008, the inventory records reflected the following:

Inventory is valued at cost using the LIFO inventory method. On December 28, 2008, the unit cost of the test equipment was decreased to $8,000. The cost will be decreased again during the first quarter of the next year.
Required: 1. Complete the following income statement summary using the LIFO method and the periodic inventory system (show computations): 2. The management, for various reasons, is considering buying 20 additional units before December 31, 2008, at $8,000 each. Restate the income statement (and ending inventory), assuming that this purchase is made on December 31, 2008. 3. How much did pretax income change because of the decision on December 3 1 , 2008? Is there any evidence of income manipulation? Explain.

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Beginning inventory Purchases Sales (45 units at $25,000 each) Units Unit Cost Total Cost 15 $12,000 $180,000 40 10,000 400,000