Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $500,000 (20,000 units at $25 each). During 2021, 80,000 units were purchased, all at the same price of $30 per unit. 85,000 units were sold during 2021.

Calculate the December 31, 2021, ending inventory and cost of goods sold for 2021 based on a periodic inventory system.

Cost of Goods Available for Sale COGS-Periodic LIFO Ending Inventory- Periodic LIFO Cost Cost Cost # of units sold #of units in ending inventory Cost of Goods Cost of Goods Ending Inventory #of units per per unit per unit Available Sold unit 20,000 25 S Beginning Inventory 20,000 25 20,000 25 500,000 500,000 500,000 Purchases $ 30 $ 30 0 80,000 30 2,400,000 Total 2,900,000 500,000 20,000 500,000 100,000 20,000