LMN Ltd uses the FIFO method for inventory valuation For the fiscal year ended December 31, 2023 Inventory Details Units Cost per Unit ($) Beginning Inventory 1,500 $18 Purchases April 1 2,500 $20 September 1 2,000 $22 Sales Units Sold 4,000 Ending Inventory 2,000 LMN Ltd experienced sales of 4,000 units during the year Calculate the COGS using the FIFO method, determine the value of ending inventory, discuss how FIFO impacts financial ratios, and analyze its influence on LMN Ltd 's financial statements

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Question: LMN Ltd. uses the FIFO method for inventory valuation. For the fiscal year ended December 31, 2023: Inventory Details Units Cost per Unit ($) Beginning

LMN Ltd. uses the FIFO method for inventory valuation. For the fiscal year ended December 31, 2023:

Inventory Details	Units	Cost per Unit ($)
Beginning Inventory	1,500	$18
Purchases
- April 1	2,500	$20
- September 1	2,000	$22
Sales
- Units Sold	4,000
Ending Inventory	2,000

LMN Ltd. experienced sales of 4,000 units during the year. Calculate the COGS using the FIFO method, determine the value of ending inventory, discuss how FIFO impacts financial ratios, and analyze its influence on LMN Ltd.'s financial statements.

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