Question: ABC Company, utilizing the LIFO method for inventory valuation, reported the following for the fiscal year ended December 31, 2023: Beginning Inventory of 800 units

ABC Company, utilizing the LIFO method for inventory valuation, reported the following for the fiscal year ended December 31, 2023: Beginning Inventory of 800 units at $15 per unit, with additional purchases on February 1 (1,500 units at $17 per unit) and June 1 (2,000 units at $19 per unit). Throughout the year, they sold 3,000 units, resulting in an Ending Inventory of 1,300 units.

Calculate the cost of goods sold (COGS) using the LIFO method for ABC Company.
Determine the value of ending inventory using the LIFO method.
Discuss how ABC Company’s choice of LIFO impacts its tax obligations.
Analyze the financial statement impact of LIFO versus FIFO for ABC Company.

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