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E7-8 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3

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Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:

			Units			Unit Cost
Inventory, December 31, prior year				6,800			$	8
For the current year:
Purchase, March 5				18,800				6
Purchase, September 19				9,800				2
Sale ($30 each)				8,000
Sale ($32 each)				15,800
Operating expenses (excluding income tax expense)	$	398,000

E7-8 Part 1

Required:

1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Loss amounts should be indicated with a minus sign.)