ABC Retail uses the FIFO method for inventory valuation. Beginning inventory consisted of 200 units at $10 each. During the year, the following purchases were made:

- 300 units at $12 each

- 500 units at $15 each

At year-end, 400 units remained in inventory. Calculate the ending inventory value and the cost of goods sold. Explain how the choice of inventory valuation method affects the financial statements and tax obligations.