Scenario 37: Inventory Valuation - Tesla, Inc.

Tesla, Inc. is an electric vehicle and clean energy company. For the fiscal year ended December 31, 2023, they reported the following inventory data:

• Beginning inventory: $6,500 million
• Purchases during the year: $18,000 million
• Sales during the year: $28,000 million
• Ending inventory consists of 15,000 units

Calculate the value of ending inventory using the following methods for Tesla, Inc.:

a) First-In-First-Out (FIFO) b) Last-In-First-Out (LIFO) c) Weighted Average

Assume that the cost of each unit of inventory remained constant throughout the year.