The Reuschel Company began 2021 with inventory of 16,000 units at a cost of $7 per unit. During 2021, 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 2021. Reuschel uses a periodic inventory system and the LIFO inventory cost method.

Required: 1. Calculate cost of goods sold for 2021. 2. Calculate the effect of the use of LIFO on Income.