1. A manufacturing company uses FIFO inventory method: Beginning inventory 2,000 units at $10/unit, purchases 10,000 units at $12/unit, ending inventory 5,000 units.
   • Requirements:
     • Calculate the cost of goods sold (COGS) and ending inventory value using FIFO method.
     • Determine the gross profit and gross profit margin for the period.
     • Analyze the impact of inventory valuation methods on financial statements and tax liabilities.
     • Recommend inventory management strategies based on FIFO principles.
     • Discuss the advantages and limitations of FIFO method in inventory costing.