NOPQ Inc. is considering switching from FIFO to LIFO for inventory valuation. For the year ended December 31, 2023, the following data is provided:

• Beginning Inventory: 1,500 units at $18 per unit
• Purchases:
  • March 1: 2,000 units at $20 per unit
  • July 1: 2,500 units at $22 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 cost of goods sold (COGS) using the LIFO method. c. Compare NOPQ Inc.’s net income under FIFO and LIFO. d. Discuss the potential tax implications of switching from FIFO to LIFO for NOPQ Inc.