HealthFirst Inc. uses a periodic inventory system. It recorded the following inventory transactions for February:

• February 1: Beginning Inventory, 350 units @ $80 each
• February 5: Purchased 600 units @ $85 each
• February 14: Sold 700 units @ $130 each
• February 20: Purchased 400 units @ $90 each
• February 28: Sold 500 units @ $140 each

Specific identification details: The February 14 sale consisted of 150 units from beginning inventory and 550 units from the February 5 purchase. The February 28 sale consisted of 300 units from the February 20 purchase and 200 units from the February 5 purchase.

Required:

1. Compute the ending inventory and COGS using FIFO and specific identification methods.
2. Calculate the gross profit using the LIFO method.
3. Evaluate the impact of each inventory costing method on HealthFirst Inc.'s financial statements.
4. Provide a recommendation for the most appropriate inventory costing method for HealthFirst Inc., considering industry practices and tax implications.