Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations.

XYZ manufactured $1,150$ units of product and incurred $$230,000$ direct material cost and $$149,500$ direct labor

costs. For financial statement purposes, $xYZ$ capitalized $$97750$ indirect costs to inventory. For tax purposes, it had

to capitalize $$133,400$ indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held $290$

units in inventory. In its second year of operations, XYZ manufactured $2,300$ units of product and incurred $$478,400$

direct material cost and $$316,250$ direct labor costs. For financial statement purposes, XYZ capitalized $$159,850$

indirect costs to inventory. For tax purposes, it had to capitalize $$221,950$ indirect costs to inventory under the

UNICAP rules. At the end of its second year, $xYZ$ held $330$ 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.

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Required B

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

costing convention.

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