Question: E7.12 (LO 3) (FIFO and Average-Cost, Income Statement Presentation) The board of directors of Oksana ASA is considering whether or not it should instruct the

E7.12 (LO 3) (FIFO and Average-Cost, Income Statement Presentation) The board of directors of Oksana ASA is considering whether or not it should instruct the accounting department to change from a first-in, first-out (FIFO) basis of pricing inventories to an average-cost basis. The following information is available.

Sales 20,000 units @ €50 Inventory, January 1 6,000 units @ 20 Purchases 6,000 units @ 22 10,000 units @ 25 7,000 units @ 30 Inventory, December 31 9,000 units @ ?

Operating expenses €200,000 Instructions Prepare a condensed income statement for the year on both bases for comparative purposes. (Round to two decimal places.)

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