Valley Electronics uses a periodic inventory system, its inventory units and costs for the month of June 2005 was as follows Valley Electronics Date Explanation Units Units Cost Total Cost 1/1 Beginning inventory 100 $10 4/15 Purchase 200 8/24 Purchase 300 12 11/27 Purchase 400 13 Total goods available During the year, 550 units were sold, and 450 units are on hand at 31/12 First-in, first-out (FIFo) The FIFO method assumes that the earliest goods purchased are the first to be sold The following example illustrates the FIFO inventory cost flow. e cost method assumes that the goods available for sale have the same (average) The averag Ending Inventory Cost of Goods Sold Cost of goods available for sale Less: Ending inventory Cost of goods sold cost per unit