ABCD Corporation uses the FIFO method for inventory costing. For the fiscal year ended December 31, 2023, the following data is provided:

• Beginning Inventory: 1,000 units at $10 per unit
• Purchases:
  • April 1: 2,000 units at $12 per unit
  • October 1: 3,000 units at $15 per unit

• Sales:
  • 4,500 units sold during the year

• Ending Inventory: 1,500 units

a. Calculate the cost of goods sold (COGS) using the FIFO method. b. Determine the value of ending inventory using the FIFO method. c. Analyze how the use of FIFO impacts ABCD Corporation’s gross profit margin. d. Discuss how the choice between FIFO and LIFO affects financial ratios such as inventory turnover and return on assets.