Inventory Valuation (Wholesale Distributor)

Item	Amount
Beginning inventory	5,000 units
Beginning inventory cost	$10/unit
Purchases during period	8,000 units
Purchase cost	$12/unit
Ending inventory	3,000 units

• Requirements:
  • Calculate the cost of goods sold (COGS) and ending inventory value using the LIFO method.
  • Discuss the implications of using LIFO for inventory valuation.
  • Recommend inventory management strategies based on the COGS calculation.