Calculate the value of the inventory sold during the period. Using FIFO, list the beginning inventory and the first shipments of inventory as being sold first.

Tips When removing items from beginning inventory, it is important to know whether the company uses the last-in, first-out (LIFO) or first-in, first-out (FIFO) convention.

FIFO means "First In, First Out" and is a valuation method in which the assets produced or acquired first are sold, used, or disposed of first.