PQR Corporation uses the LIFO method for inventory costing. For the fiscal year ended December 31, 2023, the following information is available:

• Beginning Inventory: 2,000 units at $20 per unit
• Purchases:
  • March 1: 3,000 units at $22 per unit
  • August 1: 4,000 units at $24 per unit

• Sales:
  • 7,000 units sold during the year

• Ending Inventory: 2,000 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. Compare PQR Corporation’s gross profit and net income under LIFO to what they would be under FIFO. d. Discuss how the use of LIFO impacts financial performance metrics like profitability ratios.