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Martinez Inc. is trying to determine whether to use the FIFO oraverage cost formula. The accounting records show the followingselected inventory information:PurchasesCost of Goods SoldEnding InventoryDateUnitsCostTotalUnitsCostTotalUnitsCostTotalOct.28,100$11$89,1008,100$11$89,1001513,50013175,500[1][2][3][4][5]2920,800[6][7][8][9][10][11][12][13]The company accountant has prepared the following partial statementof income to help management understand the financial statementimpact of each cost determination cost formula.FIFOAverageSales$502,000$502,000Cost of goods soldGross profitOperating expenses216,000216,000Income before income taxIncome tax expense (30%)Net income
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