Problem
Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2024 with $53,400 in inventory of its only product. The beginning inventory consisted of the following layers:
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4,200 units at $5 per unit
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$ 21,000
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5,400 units at $6 per unit
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32,400
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Total
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$ 53,400
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During 2024, 6,200 units were purchased at $7 per unit and during 2025, 7,400 units were purchased at $8 per unit. Sales, in units, were 7,400 and 12,800 during 2024 and 2025, respectively.
Task
a) Calculate cost of goods sold for 2024 and 2025.
b) Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for 2024 and 2025.