Inventory Valuation Methods at LG

• Values:
  • Beginning Inventory: $150,000,000
  • Purchases: $80,000,000
  • Sales Revenue: $220,000,000

• Requirements:
  1. Calculate the ending inventory using the FIFO method.
  2. Determine the cost of goods sold (COGS) using FIFO.
  3. Discuss the impact of inventory valuation on financial statements.
  4. Analyze the advantages and disadvantages of FIFO for LG.