Amazon.com, Inc. uses the weighted-average method for inventory valuation. The following information is available for the year ending December 31, 2023:

• Beginning inventory: 4,000 units @ $25 each
• Purchases: 10,000 units @ $28 each
• Sales: 12,000 units @ $50 each

Required:

1. Calculate the cost of goods sold (COGS).
2. Determine the ending inventory value.
3. Prepare the journal entries for inventory purchases and sales.
4. Discuss the impact of the weighted-average method on financial statements.