The Reuschel Company began 2018 with inventory of 27,000 units at a cost of $6 per unit. During 2018, 67,000 units were purchased for $7.60 each. Sales for the year totaled 79,500 units leaving 14,500 units on hand at the end of 2018. Reuschel uses a periodic inventory system and the LIFO inventory cost method. Required: 1. Calculate cost of goods sold for 2018. 2. Calculate the effect of the LIFO on the income.