Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,900 units of product and incurred $456,000 direct material cost and $299,250 direct labor costs. For financial statement purposes, XYZ capitalized $254,250 indirect costs to inventory. For tax purposes, it had to capitalize $285,250 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 475 units in inventory. In its second year of operations, XYZ manufactured 3,800 units of product and incurred $931,000 direct material cost and $627,000 direct labor costs. For financial statement purposes, XYZ capitalized $491,000 indirect costs to inventory. For tax purposes, it had to capitalize $545,000 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 760 items in inventory.

1. Compute XYZs 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
   Total cost of units produced
   Cost of units available for sale	$0	$0
   Cost of ending inventory
   Cost of goods sold	$0	$0

2. Compute XYZs 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
   Total cost of units produced
   Cost of units available for sale	$0	$0
   Cost of ending inventory
   Cost of goods sold	$0	$0