LMNO Inc. uses the FIFO method for inventory valuation. For the fiscal year ended December 31, 2023:

• Beginning Inventory: 1,500 units at $15 per unit
• Purchases:
  • March 1: 2,500 units at $18 per unit
  • August 1: 2,000 units at $20 per unit

• Sales:
  • 4,000 units sold during the year

• Ending Inventory: 2,000 units

a. Calculate the cost of goods sold (COGS) using the FIFO method. b. Determine the value of ending inventory using the FIFO method. c. Discuss how the FIFO method impacts LMNO Inc.’s taxable income compared to using LIFO. d. Analyze the tax implications of using FIFO versus LIFO for LMNO Inc. during a period of increasing costs.