Question: Nike, Inc. uses the LIFO method for inventory costing. For the fiscal year ended May 31, 2023, the following data is available: Beginning Inventory: 200,000

Nike, Inc. uses the LIFO method for inventory costing. For the fiscal year ended May 31, 2023, the following data is available:

Beginning Inventory: 200,000 units at $30 per unit
Purchases:
- March 1: 300,000 units at $32 per unit
- August 1: 400,000 units at $35 per unit

Sales:
- 750,000 units sold during the year

Ending Inventory: 150,000 units

a. Calculate the cost of goods sold (COGS) using the LIFO method for Nike, Inc. b. Determine the value of ending inventory using the LIFO method. c. Analyze how LIFO impacts Nike, Inc.’s financial ratios such as inventory turnover and return on assets. d. Discuss the implications of using LIFO on Nike, Inc.’s earnings per share (EPS) and profitability margins. e. Evaluate the strategic advantages and disadvantages of using LIFO in Nike, Inc.’s global supply chain. f. Recommend inventory management strategies based on Nike, Inc.’s financial performance under LIFO.

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