Coca-Cola Company uses the FIFO method for inventory valuation. For the fiscal year ended December 31, 2023, the following data is provided:

• Beginning Inventory: 1,000,000 units at $1.50 per unit
• Purchases:
  • April 1: 1,500,000 units at $1.75 per unit
  • October 1: 2,000,000 units at $2.00 per unit

• Sales:
  • 3,000,000 units sold during the year

• Ending Inventory: 1,500,000 units
• Calculate the cost of goods sold (COGS) using the FIFO method for Coca-Cola Company.
• Determine the value of ending inventory using the FIFO method.
• Discuss how FIFO influences Coca-Cola Company’s income statement for the fiscal year.
• Analyze the impact of FIFO on Coca-Cola Company’s liquidity and working capital management.
• Evaluate the strategic advantages of FIFO in managing Coca-Cola Company’s global supply chain.
• Recommend inventory optimization strategies based on Coca-Cola Company’s FIFO-based financial performance.