Discuss the principles and methods of accounting for inventory. Explain the impact of inventory valuation methods $($FIFO$,$ LIFO, and weighted average$)$ on financial statements and the considerations for choosing an appropriate method for a business.

Inventory accounting involves tracking the cost of inventory and its impact on financial statements. Explain the principles and methods of inventory valuation: FIFO $($First In$,$ First Out$),$ LIFO $($Last In$,$ First Out$),$ and weighted average cost. Discuss how each method affects the valuation of inventory, cost of goods sold, and net income. Analyze the considerations for selecting an inventory valuation method, including market conditions, tax implications, and financial reporting objectives.