The inventory footnote to the 1979 annual report of the Cheral 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 Cheral Company, the net effect of all the inventory changes was to increase pretax income by \(\$ 60,000\) over what it would have been had inventories been maintained at their physical levels at the start of the year.

The price of Cheral Company's merchandise purchases was \(\$ 22\) per unit during 1979 after having risen steadily for many years. Cheral Company uses a periodic inventory method. Cheral Company's inventory positions at the beginning and end of the year are summarized below.

a What was the average cost per unit of the 10,000 units removed from the January 1, 1979, LIFO inventory?
b What was the January 1, 1979, LIFO cost of inventory?

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Date January 1, 1979 December 31, 1979 Physical Count of Inventory 30,000 units 20,000 units LIFO Cost of Inventory $ ? $260,000