Please provide the correct answer with steps. The answer for part 1 is 487,400.

The Reuschel Company began 2021 with inventory of 12,000 units at a cost of $7 per unit. During 2021, 52,000 units were purchased for $8.70 each. Sales for the year totaled 57,000 units leaving 7,000 units on hand at the end of 2021. Reuschel uses a periodic inventory system and the LIFO inventory cost method. Required: 1. Calculate cost of goods sold for 2021. 2. Calculate the effect of the use of LIFO on Income. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the effect of the use of LIFO on Income. The effect of the LIFO layer liquidation is to increase income by $ 85,000 X