The MegaMart Company began 2024 with inventory of 16,000 units at a cost of $7 per unit. During 2024, 56,000 units were purchased for $8.20 each. Sales for the year totaled 63,000 units leaving 9,000 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.

1. Calculate cost of goods sold for 2024.

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

The effect of the LIFO layer liquidation is to

income by