Calculate the cost of goods sold (COGS) and ending inventory value using the LIFO method. Given the following inventory transactions: beginning inventory of 100 units at $12 per unit, purchases of 200 units at $15 per unit, and sales of 250 units. Discuss the impact of using LIFO during periods of rising prices on the company’s financial statements, particularly on COGS, ending inventory, and net income. Analyze how LIFO affects tax liabilities and cash flows, considering the higher COGS and lower taxable income compared to other inventory valuation methods like FIFO and weighted average. Discuss the strategic reasons for choosing LIFO, including tax advantages and the matching principle in accounting. Consider the potential drawbacks of LIFO, such as reduced comparability with international competitors and the effects of LIFO liquidation. Explain how changes in inventory levels and purchasing patterns can impact the financial outcomes under LIFO.