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 inventor, changes was to increase pretax income by S900.000 over what it would have been had inventories been maintained at their physical levels at the start of the year.

The acquisition cost of Chan Company's merchandise purchases was S26 per unit during the year, after having risen erratically over past years. Its inventory positions at the beginning and the end of the vear follow .

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

a. What was the average cost per unit of the 5(),()()() units removed from the January 1 LIFO inventory?

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