Q17

Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2021 with $53,400 in inventory of its only product. The beginning inventory consisted of the following layers:

4,200 units at $5 per unit	$	21,000
5,400 units at $6 per unit		32,400
Total	$	53,400

During 2021, 6,200 units were purchased at $7 per unit and during 2022, 7,400 units were purchased at $8 per unit. Sales, in units, were 7,400 and 12,800 during 2021 and 2022, respectively.

Required:

1. Calculate cost of goods sold for 2021 and 2022.

2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for 2021 and 2022.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate cost of goods sold for 2021 and 2022. Cost of goods sold: 2021 2022 Required 1 Required 2 > Required 1 Required 2 Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for 2021 and 2022. LIFO liquidation before tax 2021 2022