The Reuschel Company began 2013 with inventory of 15,000 units at a cost of $6 per unit. During 2013, 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 2013. Reuschel uses a periodic inventory system and the LIFO inventory cost method.

Required:
1.	Calculate cost of goods sold for 2013.

2.	Calculate the effect of the LIFO on the income.

The effect of the LIFO layer liquidation is to ___________ (Increase, Decrease) income by ______________.

*Please show how you got the answer, not just the answer*