What is the ending inventory balance at the end of the year using the FIFO method?

A) $1,685
B) $1,575
C) $1,805
D) $3,585

The FIFO (First-In, First-Out) method assumes that the oldest inventory items are sold first, leaving the most recently purchased or produced items in ending inventory. To calculate the ending inventory balance, you would sum the costs of the most recent purchases or productions until you reach the quantity of inventory unsold at year-end. The correct answer, therefore, depends on the specific costs and quantities of inventory purchased or produced over the year, which are not provided here. However, based on the FIFO principle, the ending inventory would consist of the items with the most recent costs.