Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2013 with inventory of 7,900 units of its only product. The beginning inventory balance of $112,800 consisted of the following layers:

3,400 units at $12 per unit

=

$

40,800

4,500 units at $16 per unit

=

72,000

$

112,800

During the three years 20132015 the cost of inventory remained constant at $18 per unit. Unit purchases and sales during these years were as follows:

	Purchases			Sales
2013		31,000			33,000
2014		41,000			43,500
2015		33,000			34,000

Required:

1.	Calculate cost of goods sold for 2013, 2014, and 2015.

2.	Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for each of the three years.

3.	Determine the effects of LIFO liquidation on cost of goods sold and net income for 2013, 2014, and 2015. Canselas effective income tax rate is 45%.