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The Reuschel Company began 2013 with inventory of 10,000 units at a cost of $7 per unit. During 2013, 50,000 units were purchased for $8.50 each. Sales for the year totaled 54,000 units leaving 6,000 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.
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