The Reuschel Company began 2018 with inventory of 30,000 units at a cost of $9 per unit. During 2018, 70,000 units were purchased for $10.30 each. Sales for the year totaled 84,000 units leaving 16,000 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.