10^th Generation Electronics had two transformers in its inventory, one purchased in February for $11,800 and the other acquired in September for $13,300. In December, they sold one of the transformers to Ram Enterprises for $16,400 and reported a gross profit of $3,100. 10^th Generation Electronics evidently uses the ________ inventory valuation method.

A. FIFO

B. LIFO

C. Average

D. Flexplus