Hazelton Corporation uses a periodic inventory system and the LIFO method to value its
inventory. The company began 2011 with $59,000 in inventory of its only product. The
beginning inventory consisted of the following layers:
During 2011, 6,000 units were purchased at $8 per unit and during 2012, 7,000 units were
purchased at $9 per unit. Sales, in units, were 7,000 and 12,000 during 2011 and 2012,
1. Calculate cost of goods sold for 2011 and 2012.
2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for 2011 and