Browning Company's inventory records for year 2010-2011 are as follows:

Year 2010

Year 2011

1. Compute the cost of ending inventory and cost of goods sold for 2010 and 2011, using the following inventory costing methods:
2. Assuming a corporate income tax rate is 40 percent and switching from FIFO to LIFO to reduce its income tax expense, calculates the tax savings or loss this would havemade.

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Number of Units Cost per Unit Total Cost Beginning Inventory First purchase Second purchase Third purchase Fourth purchase 2,300 3.100 3.600 2,900 2.400 $2.60 2.75 2.85 2.95 S 5,980 8,525 10,260 8,555 7.440 Goods available for sale 14,300 S40,760 Units sold during the year 11,000 a5.50 Number of Units Cost per Unit Total Cost Beginning Inventory First purchase Second purchase Third purchase Fourth purchase 3,300 2,600 3,100 2,400 1.900 Goods available for sale13,300 12,000 3.10 3.10 3.25 3.45 8,060 9,610 7,800 6.555 Units sold during the year a5.80