With respect to both Costs and Expenses, what cost classification is GAAP concerned with? Why? Can you explain WHY it would be important?

Do you understand HOW the beginning and ending inventory amounts were arrived at? In real life, what actually happens to arrive at this number?

Can you explain WHY the ending inventory amounts would be important? If they were mis-stated, would this have any impact on the reported results of operations? Why or why not? How would an inventory OVERSTATEMENT affect reported profits? How would an inventory UNDERSTATEMENT affect reported profits?

If the finished goods went up during the period while the company produced and sold the same number of units, what caused that? Is that even possible?