LOral sells a bottled night repair facial cream. The following relates to the activities of the business during June 2020:

June 8 Purchased 10,000 bottles, purchase price $40.00 per bottle

June 23 Purchased 15,000 bottles, purchase price $41.20 per bottle

June 30 Closing inventory as per physical stocktake is 22,000 bottles

Additional information

i Four thousand bottles of the closing inventory have passed their use-by date and cannot be sold for human use. However, they can be sold to an arts supplies store for use in pigments in craft paints for $17 per bottle. These bottles were originally purchased on June 8.

ii Transportation from the supplier to LOral costs $4 per bottle.

iii Transportation from LOral to department stores costs $5 per bottle

iv Transportation from LOral to the arts supplies store also costs $5 per bottle

v LOral pays both sets of transportation costs.

vi The latest selling price for inventory yet to reach its use by date is $85

question: Briefly explain why the FIFO method is the most appropriate method to measure inventory cost flow for the facial cream product of LOral.