Inventory Valuation Methods at PepsiCo

• Values:

• Beginning Inventory: $5,000,000
• Purchases: $2,000,000
• Sales Revenue: $7,000,000
• Requirements:

0. Calculate the ending inventory using the FIFO method for PepsiCo.
1. Determine the cost of goods sold (COGS) using the FIFO method.
2. Discuss the advantages and disadvantages of FIFO in inventory valuation.
3. Analyze the impact of inventory valuation methods on PepsiCo’s financial statements.