XYZ Inc. is a manufacturing company that produces widgets. At the end of the fiscal year, XYZ Inc. has an inventory of $1,000$ widgets. The company uses the FIFO inventory costing method. The cost of the first $600$ widgets was $$10$ per unit, and the cost of the remaining $400$ widgets was $$12$ per unit. The market value of the inventory is $$12,000.$

What is the value of the inventory using the FIFO method?

How would the value of the inventory differ if XYZ Inc. used the LIFO method?

Discuss the impact of inventory valuation on financial statements.