Reconstructing financial statement data from information on effects of liquidations of LIFO layers. The inventory footnote to the annual report of Chan Company reads in part as follows;

Because of continuing high demand throughout the year, inventories were unavoidably reduced and could not be replaced. Under the LIFO system of accounting, used for many years by Chan Company, the net effect of all the inventory changes was to increase pretax income by $900,000 over what it would have been had inventories been maintained at their physical levels at the start of the year.

The price of Chan Company's merchandise purchases was $26 per unit during the year, after having risen erratically over past years. Chan Company uses a periodic inventory method. Its inventory positions at the beginning and the end of the year appear below.

a. What was the average cost per unit of the 30.000 units removed from the January 1 LIFO inventory?

b. What was the January 1 LIFO cost of inventory?

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Date January 1.. December 31 Physical Count of Inventory 200,000 units 150,000 units LIFO Cost of Inventory $ ? $600,000