RST Company uses the FIFO method for inventory costing. For the year ended December 31, 2023:

Beginning Inventory: 2,000 units at $25 per unit

Purchases:

• March 1: 3,000 units at $28 per unit
• July 1: 4,000 units at $30 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 FIFO method. b. Determine the value of ending inventory using the FIFO method. c. Discuss how the FIFO method helps mitigate the impact of rising costs during periods of inflation. d. Analyze the impact of inflation on financial statements when using FIFO compared to LIFO.