4 Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,000 units of product and incurred $195,000 direct material cost and $112,500 direct labor costs. For financial statement purposes, XYZ capitalized $67,500 indirect costs to Inventory. For tax purposes, It had to capitalize $98,500 Indirect costs to Inventory under the UNICAP rules. At the end of its first year, XYZ held 100 units In Inventory. In its second year of operations, XYZ manufactured 2,000 points units of product and Incurred $400,000 direct material cost and $240,000 direct labor costs. For financial statement purposes, XYZ capitalized $104,000 Indirect costs to Inventory. For tax purposes, It had to capitalize $158,000 indirect costs to Inventory under the UNICAP rules. At the end of its second year, XYZ held 300 items In Inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. b. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. * Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. (Do not round intermediate calculations.) Book Tax Cost of beginning inventory S 337,500 Total cost of units produced 415,000 Cost of units available for sale S 752,500 0 Cost of ending inventory 112.500 Cost of goods sold S 840,000 S 4 Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,000 units of product and incurred $195,000 direct material cost and $112,500 direct labor costs. For financial statement purposes, XYZ capitalized $67,500 Indirect costs to Inventory. For tax purposes, It had to capitalize $98,500 indirect costs to Inventory under the 1 UNICAP rules. At the end of its first year, XYZ held 100 units In Inventory. In its second year of operations, XYZ manufactured 2,000 points units of product and Incurred $400,000 direct material cost and $240,000 direct labor costs. For financial statement purposes, XYZ capitalized $104,000 Indirect costs to Inventory. For tax purposes, It had to capitalize $158,000 Indirect costs to Inventory under the UNICAP rules. At the end of its second year, XYZ held 300 items In Inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. b. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. * Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. (Do not round intermediate calculations.) Book Tax Cost of beginning inventory S 375,000 x Total cost of units produced 375,000 * Cost of units available for sale 750,000 S Cost of ending inventory 112,500 * Cost of goods sold S 837.500 S