Lambda Retail Scenario Inventory Valuation Data Lambda Retail uses the FIFO method for inventory valuation The following data is available for the year Beginning Inventory 1,000 units at $10 per unit Purchases January 2,000 units at $12 per unit April 1,500 units at $15 per unit Sales February 3,000 units May 2,500 units Ending Inventory 2,000 units Requirements Calculate Lambda Retail's cost of goods sold (COGS) using the FIFO method Determine the value of ending inventory using the FIFO method Analyze the impact of inventory costing methods on Lambda Retail's financial statements and profitability Recommend strategies for improving inventory turnover and reducing carrying costs

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Question: Lambda Retail Scenario: Inventory Valuation Data: Lambda Retail uses the FIFO method for inventory valuation. The following data is available for the year: Beginning Inventory:

Lambda Retail

Scenario: Inventory Valuation

Data: Lambda Retail uses the FIFO method for inventory valuation. The following data is available for the year:

Beginning Inventory: 1,000 units at $10 per unit
Purchases:
- January: 2,000 units at $12 per unit
- April: 1,500 units at $15 per unit

Sales:
- February: 3,000 units
- May: 2,500 units

Ending Inventory: 2,000 units

Requirements: Calculate Lambda Retail's cost of goods sold (COGS) using the FIFO method. Determine the value of ending inventory using the FIFO method. Analyze the impact of inventory costing methods on Lambda Retail's financial statements and profitability. Recommend strategies for improving inventory turnover and reducing carrying costs.

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