# I'm not exactly sure how to find FIFO, LIFO, and average cost.

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet \$5

Oct 8th, 2015

here i give you example you can get help from this.

Date Explanation Units Unit Cost Total Cost
June 1 Inventory 120 \$5 \$ 600
12 Purchases 370 6 2,220
23 Purchases 200 7 1,400
30 Inventory 230

Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.)

June 1 Inventory 120 \$5 \$ 600
12 Purchases 370 6 2,220
23 Purchases 200 7 1,400
= 690 units available for sale
= \$4,220

FIFO
Ending Inventory
(200 x \$7) + (30 x \$6) = \$1,580
COGS
4,220 - 1,580 = \$2,640

LIFO
Ending Inventory
(120 x \$5) + (110 x \$6) = \$1,260
COGS
4,220 - 1,260 = \$2,960

Average Cost
4,220 / 690 = \$6.12 avg. cost per unit
Ending Inventory
230 x 6.12 = \$1,408
COGS
4,220 - 1,408 = \$2,812

Source(s):Accounting Fan

Oct 8th, 2015

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Oct 8th, 2015
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Oct 8th, 2015
Nov 25th, 2017
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