Costco Wholesale Corporation uses the weighted-average method for inventory valuation. The following information is available for the year ending December 31, 2023:

• Beginning inventory: 2,000 units @ $10 each
• Purchases: 6,000 units @ $12 each
• Sales: 7,000 units @ $20 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.