1. Amazon.com, Inc.

Scenario: Inventory Valuation

Data: Amazon.com uses the FIFO method for inventory valuation. At the beginning of the year, it had 5,000 units of a product at $10 each. During the year, Amazon purchased 10,000 units at $15 each and 5,000 units at $20 each. It sold 15,000 units during the year.

Requirements:

1. Calculate Amazon.com's cost of goods sold (COGS) using the FIFO method.
2. Determine the value of ending inventory using the FIFO method.
3. Discuss the advantages and disadvantages of FIFO for Amazon.com's inventory management.
4. Analyze how FIFO impacts Amazon.com's financial statements compared to LIFO.
5. Recommend inventory management strategies based on FIFO principles for Amazon.com.