Question - The board of directors of Swifty 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.
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Sales
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22,000units @ $62
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Inventory, January 1
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5,800 units @ 25
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Purchases
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5,700 units @ 27
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10,900 units @ 31
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6,600 units @ 37
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Inventory, December 31
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7,000 units @ ?
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Operating expenses
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$246,000
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Prepare a condensed income statement for the year on both bases for comparative purposes.