Discuss the FIFO price method of costing of stock issued and valuation of stock in hand.

The First-In, First-Out (FIFO) method is one of the commonly used techniques for inventory costing and valuation. It operates on the principle that the oldest inventory items are the ones sold or used first, leaving the newest items in stock. This method is widely accepted under both generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) and is favored for its simplicity and adherence to the flow of goods.

### FIFO Method for Costing of Stock Issued:

When inventory is issued or sold using the FIFO method, the cost of goods sold (COGS) and the value of ending inventory are calculated based on the assumption that the oldest inventory items are used first. Here's how it works:

1. Identify the Oldest Inventory: Begin by determining the cost of the oldest inventory items on hand. These are the items that were purchased or produced first and are therefore the first to be ____ __________ ______ _____ _______ ____ _____ __________ _____.
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