The MegaMart Company began 2024 with inventory of 15,000 units at a cost of $6 per unit. During 2024, 55,000 units were purchased for $8.00 each. Sales for the year totaled 61,500 units leaving 8,500 units on hand at the end of 2024. MegaMart uses a periodic inventory system and the LIFO inventory cost method.

Required:

1. Calculate cost of goods sold for 2024.

2. Calculate the effect of the use of LIFO on Income.