Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured $1,600$ units of product and incurred $$320,000$ direct material cost and $$208,000$ direct labor costs. For financial statement purposes, XYZ capitalized $$136,000$ indirect costs to inventory. For tax purposes, it had to capitalize $$185,600$ indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held $380$ units in inventory. In its second year of operations, XYZ manufactured $3,200$ units of product and incurred $$694,400$ direct material cost and $$440,000$ direct labor costs. For financial statement purposes, XYZ capitalized $$222,400$ indirect costs to inventory. For tax purposes, it had to capitalize $$308,800$ indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held $420$ 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.