1. XYZ Inc. uses the FIFO method for inventory costing. For the year ended December 31, 2023, the following data is provided: Beginning Inventory consisted of 500 units valued at $15 per unit. During the year, XYZ purchased 1,800 additional units: 1,000 units on February 1 at $18 per unit and 800 units on June 1 at $20 per unit. By year-end, 800 units remained in inventory. In total, 1,500 units were sold over the course of the year.

a. Calculate the cost of goods sold (COGS) using the FIFO method. b. Determine the value of ending inventory using the FIFO method. c. Explain how the FIFO method influences XYZ Inc.'s income statement for the year. d. Discuss the strategic advantages of using FIFO in XYZ Inc.'s inventory management.