The board of directors of Blue Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available. Sales Inventory, January 1 Purchases Inventory, December 31 Operating expenses 20,000 units@ 5,600 units@ 5,500 units @ 9,200 units @ 7,000 units@. 7.300 units @ $61 24 27 31 37 ? $244,000 Prepare a condensed income statement for the year on both bases for comparative purposes.

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.