• MNO Corporation operates a retail store and manages its inventory using the perpetual inventory system. The company's inventory records show the following transactions for the month of January:

  • Beginning Inventory: 500 units at $10 per unit
  • Purchases:
    • January 5: 300 units at $12 per unit
    • January 15: 200 units at $14 per unit
  • Sales:
    • January 8: 400 units
    • January 20: 300 units

• Prepare the inventory records, including the cost of goods sold and ending inventory valuation, using the FIFO method. Discuss the advantages and disadvantages of using the FIFO method for inventory valuation.