The First-In-First-Out (FIFO) Method of calculating ending inventory is an accounting technique that shows how much inventory a company has at the end of the period. Under this method, the cost of the first items purchased during the period is used to determine the cost of goods sold and the ending inventory. This means that when it’s time to calculate your financials, you’ll need to analyze your costs in relation to the order in which items were purchased. With FIFO, you can easily keep track of inventory levels without having to worry about fluctuating prices or unpredictable market conditions. By using the FIFO Method, you can ensure that you have accurate records and make sure that your business remains financially healthy.