TUV Company uses the FIFO method for inventory valuation. For the fiscal year ended December 31, 2023, the following data is available:

• Beginning Inventory: 800 units at $20 per unit
• Purchases:
  • April 1: 1,200 units at $22 per unit
  • October 1: 1,500 units at $24 per unit

• Sales:
  • 2,500 units sold during the year

• Ending Inventory: 1,000 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. Analyze how the use of FIFO impacts TUV Company’s gross profit margin and net income.