$4.$ During its first two years of operations, a retailer has found that the cost of the inventory was quite

variable. The following table shows the company$$s purchases and sales during the past two years.

Inventory Purchased Inventory Sold

Year Units Unit Cost Units Selling Price

$180,000$ $$1075,000$ $$15\mathrm{.}50$

$265,000$ $$855,000$ $$12\mathrm{.}40$

In Year $2,$ the company$$s inventory turnover ratio was $3\mathrm{.}67,$ using end$-$of$-$period inventory and cost of goods

sold $($COGS$).$

Determine the method that the retailer is using to value its inventory.