Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows:
Purchases:

Sales:
April ........................ 16,000 units
May ................................ 16,000
June ................................ 20,000
July ................................ 24,000
August ............................ 28,000
September ........................ 28,000
October ........................... 18,000
November ........................ 10,000
December ........................... 8,000
Total units ....................... 168,000
Total sales ................. $10,000,000
The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system.
Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the company's financial statements?

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Date April 6 May 18 Units Purchased 31,000 33,000 40,000 40,000 27,200 12,800 8,000 8,000 200,000 Unit Cost $36.60 39.00 39.60 42.00 42.75 43.50 Total Cost $1,134,600 1,287,000 1,584,000 1,680,000 1,162,800 556,800 358,800 384,000 $8,148,000 July 10 August 10 October 25 November 4 December 10 48.00