LMN Company uses the LIFO method for inventory valuation. For the year ended December 31, 2023, the following information is available:

• Beginning Inventory: 2,000 units at $18 per unit
• Purchases:
  • March 1: 2,500 units at $20 per unit
  • July 1: 3,000 units at $22 per unit

• Sales:
  • 5,500 units sold during the year

• Ending Inventory: 1,000 units

a. Calculate the cost of goods sold (COGS) using the LIFO method. b. Determine the value of ending inventory using the LIFO method. c. Analyze how the use of LIFO impacts LMN Company’s taxable income and tax liability. d. Discuss strategies LMN Company might employ to optimize inventory management under LIFO during economic downturns. e. Evaluate the risk factors associated with using LIFO in inventory valuation for financial reporting purposes. f. Recommend alternative inventory costing methods and their potential impact on LMN Company’s financial statements.