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To solve this problem using the FIFO (First In, First Out) method for inventory valuation, let's break down the steps needed to calculate:

1. **Cost of Goods Sold (COGS)** for March: This is the total cost of inventory sold throughout the month.
2. **Ending Inventory** at the end of March: This is the value of the inventory that remains on hand at the end of the month.

### Step-by-Step Solution:

#### 1. FIFO Inventory Flow
Using FIFO, we assume that the earliest items purchased are the first to be sold. Thus, we will calculate COGS by allocating costs to sales based on the order in which the purchases were made.

#### 2. Inventory Transactions Analysis
Let's analyze each transaction and apply the FIFO method.

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1. **March 1:**
   - Beginning Inventory: 40 units at $74 each.
   
2. **March 5:**
   - Purchased 24 units at $74 each.
   - New balance: $40 \times 74 + 24 \times 74$.

3. **March 9:**
   - Sold 16 units.
   - According to FIFO, these come from the beginning inventory (40 units at $74 each).
   - Cost of Goods Sold for this sale: $16 \times 74$.

4. **March 18:**
   - Purchased 113 units at $76 each.
   - Sold 16 units at $74 and then 48 units at $76, totaling 64 units sold

An inventory record card for item M-440 shows details for March 2022, with purchases, sales, and balances. Calculate the cost of goods sold for the month and the ending inventory using the FIFO method.

Learn to calculate the cost of goods sold (COGS) and ending inventory for item M-440 for March 2022 using the FIFO method in a perpetual inventory system. This example demonstrates inventory valuation and cost accounting principles, ideal for accounting students.

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