Question 8

An electronics store using the FIFO inventory method starts the year with 300 units of a particular laptop model at $600 each. Throughout the year, they have multiple purchase and sale transactions. Here's a summary of their activities:

Purchases:

March: Bought 200 units at $650 each.

June: Bought 150 units at $680 each.

September: Bought 180 units at $700 each.

Sales:

April: Sold 180 units.

July: Sold 100 units.

November: Sold 250 units.

Calculate the following for the end of the year using the FIFO method:

The ending inventory value of the laptops.

The cost of goods sold (COGS) for the year.

Additionally, analyze how the FIFO method affected the company's financial statements and profitability in comparison to other inventory costing methods.