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Inventory Valuation Methods and Financial Statement Impacts : A company uses the FIFO inventory costing method and recently experienced a significant increase in inventory costs

Inventory Valuation Methods and Financial Statement Impacts: A company uses the FIFO inventory costing method and recently experienced a significant increase in inventory costs due to supply chain disruptions. Analyze the impact of rising inventory costs on the company's financial statements, including cost of goods sold (COGS), gross profit, and net income. Discuss alternative inventory valuation methods such as LIFO and weighted average cost and their implications for financial reporting and tax planning.

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