You are a financial advisor with a client in the wholesale produce business that just completed its first year of operations. Due to weather conditions, the cost of acquiring produce to resell has escalated during the ladder part of this period. Your client mentions that because her business sells perishable goods, she has striven to maintain a FIFO flow of the physical goods. Although sales are good, the increase cost of inventory has put the business in a tight cash position.

1. Recommend an inventory costing method and justify your recommendation.