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Calculate cost of goods sold (COGS) and ending inventory using the LIFO method. Item Amount Beginning inventory 5,000 units Beginning inventory cost $10/unit Purchases during

Calculate cost of goods sold (COGS) and ending inventory using the LIFO method.

Item

Amount

Beginning inventory

5,000 units

Beginning inventory cost

$10/unit

Purchases during period

8,000 units

Purchase cost

$12/unit

Ending inventory

3,000 units

Requirements:

Calculate the cost of goods sold (COGS) using the LIFO method.

Calculate the value of ending inventory using the LIFO method.

Discuss the implications of using LIFO for inventory valuation.

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