1. A retail company uses FIFO inventory valuation: Beginning inventory 1,000 units at $5/unit, purchases 2,000 units at $6/unit, ending inventory 1,500 units.
   • Requirements:
     • Apply the revenue recognition principle to determine when revenue should be recognized for sales using FIFO.
     • Calculate the cost of goods sold (COGS) and ending inventory value.
     • Prepare an inventory valuation report with revenue recognition considerations.
     • Recommend inventory management strategies based on FIFO and revenue recognition principles.
     • Analyze the impact of revenue recognition on financial statements and profitability for the retail company.