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Taylor Corporation has used a periodic inventory system and the LIFO cost method since its...

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Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception in 2011. The company began 2018 with the following inventory layers (listed in chronological order of acquisition) 18,500 units $20 23,500 units@ $25 Beginning inventory $370,000 587,500 $957,500 During 2018, 47,000 units were purchased for $30 per unit. Due to unexpected demand for the company's product, 2018 sales totaled 58,000 units at various prices, leaving 31,000 units in ending inventory. Required 1. Calculate cost of goods sold for 2018. 2. Determine the amount of LIFO liquidation profit that the company must report in a disclosure note to its 2018 financial statements Assume an income tax rate of 40%. 3. If the company decided to purchase an additional 11,000 units at $30 per unit at the end of the year, how much income tax currently payable would be saved? 1 Cost of goods sold 2. LIFO liquidation profit 3. Income tax payable

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