-zto.mheducation.com/ext/apy er 7 Homework Assignment Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate Problem 07-11 (Algo) [LO 7-4, 7-11] Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,300 units of product and incurred $344,500 direct material cost and $237,250 direct labor costs. For financial statement purposes. XYZ capitalized $192,250 indirect costs to Inventory. For tax purposes, it had to capitalize $223,250 Indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 325 units in inventory. In its second year of operations, XYZ manufactured 2,600 units of product and incurred $702.000 direct material cost and $494,000 direct labor costs. For financial statement purposes. XYZ capitalized $358,000 Indirect costs to inventory. For tax purposes, it had to capitalize $412,000 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 520 items in inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. b. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention.