Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured $1,450$ units of product and incurred $$290,000$ direct material cost and $$188,500$ direct labor costs. For financial statement purposes, XYZ capitalized $$123,250$ indirect costs to inventory. For tax purposes, it had to capitalize $$168,200$ indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held $350$ units in inventory. In its second year of operations, XYZ manufactured $2,900$ units of product and incurred $$620,600$ direct material cost and $$398,750$ direct labor costs. For financial statement purposes, XYZ capitalized $$201,550$ indirect costs to inventory. For tax purposes, it had to capitalize $$279,850$ indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held $390$ items in inventory.

Required:

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.

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.