Apply perpetual FIFO and average cost: compare effects E6.8 (LO 2, 3) Glenmount Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information: Purchases Cost of Goods Sold Balance Date Units Cost Total Units Cost Total Units Cost Total Oct. 2 9,000 $12 $108,000 15 15,000 14 210,000 29 22,000 The company accountant has prepared the following partial statement of income to help management understand the financial statement impact of each cost determination cost formula FIFO Average Cost Sales $525.000 $525,000 Cost of goods sold Gross profit Operating expenses 200,000 200,000 Income before income tax Income tax expense (30%) Net income Instructions a. Complete the perpetual inventory schedule shown above using the FIFO cost formula. b. Complete the perpetual inventory schedule shown above using the average cost formula. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.) c. Fill in the missing information in the blanks shown in the partial statement of income above. d. Explain whether the comparativ net incomes of each cost formula determined in part (c) will be expected to increase, decrease, or not change if (1) costs fall, and (2) costs remain stable