·Scenario 1: Inventory Valuation Methods

ABC Company is a manufacturing firm that produces electronic gadgets. They have just completed their annual inventory count and need to determine the value of their ending inventory using different valuation methods. The following information is available for the year ended December 31, 2023:

• Beginning inventory: $150,000
• Purchases during the year: $500,000
• Sales during the year: $700,000
• Ending inventory consists of 500 units

Calculate the value of ending inventory using the following methods:

a) First-In-First-Out (FIFO) b) Last-In-First-Out (LIFO) c) Weighted Average

Assume that the cost of each unit of inventory remained constant throughout the year.