Company $x\frac{Y}{{?}_{?}}$ manutactures a tangible product and sells the product at wholesale. In its tirst year of operations, $x\frac{Y}{{?}_{?}}$ manufactured $2,100$ units of product and incurred $$420,000$ direct material cost and $$273,000$ direct labor costs. For financial statement purposes, $xYZ$ capitalized $$178,500$ indirect costs to inventory. For tax purposes, it had to capitalize $$243,600$ indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held $480$ units in inventory. In its second year of operations, $xYZ$ manufactured $4,200$ units of product and incurred $$953,400$ direct material cost and $$577,500$ direct labor costs. For financial statement purposes, XYZ capitalized $$291,900$ indirect costs to inventory. For tax purposes, it had to capitalize $$405,300$ indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held $520$ items in inventory.

Required:

a$.$ Compute XYZ$\text{'}$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$\text{'}$s cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Compute XYZ$\text{'}$s cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention.

Note: Round down the number of units to whole number.

$\backslash$table$[[,$Book,Tax$],[$Cost of beginning inventory,$$,281,500,$$$,169,480],[$Total cost of units produced,,,,$],[$Cost of units available for sale,$$,281,500,$$$,169,480],[$Cost of ending inventory,,,,$],[$Cost of anods sold,$$,281\mathrm{.}500,$$$,169\mathrm{.}480]]$