Ford Motor Company is considering changing its inventory valuation method. Currently, they use

the FIFO method, but they are contemplating switching to the LIFO method. The following data

is provided:

● Current Inventory Value (FIFO): $50,000,000

● Expected Inflation Rate: 5%

● Number of Units Sold: 10,000

● Cost per Unit: $100

a) Calculate the Cost of Goods Sold (COGS) under FIFO. b) Determine the Ending Inventory

Value under LIFO. c) Compute the Impact on Net Income. d) Analyze the Effect on Inventory

Turnover. e) Evaluate the Decision to Change Valuation Methods.