INVENTORY EVALUATION METHODS First-in, First Out (FIFO) Method The first-in, first out method of costing inventory is based on the assumption that costs should be remaining is assumed to be made up of the most recent costs. The illustration of the application of this method is based on the following data for a particular commodity: January 1 inventory 200 units at $9 March 10 purchase 300 units at $10 Sept. 21 purchase 400 units at $11 Nov. 18 purchase 100 units at $12 Available for sale during year 1,000 The physical count on December 31 shows that 300 units of the particular commodity are on hand. REQUIRED: USING FIFO, LIFO and AVERAGE METHODS, DETERMINE THE COST OF GOODS SOLD and THE COST OF ENDING INVENTORY (18 points) FIFO METHOD $1,800 3,000 4,400 1.200 $10,400 18 Last-in, First Out Method (LIFO) Average Cost Method