The board of directors of Ichiro Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available.

Instructions
Prepare a condensed income statement for the year on both bases for comparativepurposes.

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Sales Inventory, January 1 Purchases $50 20 21,000 units 6,000 units 6,000 units 10,000 units 7,000 units 8,000 units 25 30 7 ? Inventory, December 31 Operating expenses $200,000