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Product X

Units Unit Cost Total Cost


Beginning Inventory 10 $8.00 $80.00
Feb. 15 Purchase 15 10.00 150.00
June 15 Purchase 12 12.00 144.00
Nov. 15 Purchase 8 14.00 112.00
Tot. M'dse. Available for sale 45 $486.00

Ending Inventory = 20 units

FIFO Units Unit Cost Total Cost


Nov. 15 Purchase 8 $14.00 $112.00
June 15 Purchase 12 12.00 144.00
20 newest items would be in inventory

Inventory Cost 20 $256.00

Tot. M'dse. Available for sale $486.00


- Ending Inventory Cost 256.00 oldest units were sold
= Cost of M'dse. Sold $230.00

LIFO Units Unit Cost Total Cost


Beginning Inventory 10 $8.00 $80.00
Feb. 15 Purchase 10 10.00 100.00
20 oldest items would be in inventory

Inventory Cost 20 $180.00

Tot. M'dse. Available for sale $486.00


- Ending Inventory Cost 180.00 newest units were sold
= Cost of M'dse. Sold $306.00

Average Cost

Tot. M'dse. Available for sale = $486.00 = $10.80 Avg. Cost per unit
Tot. # of Units Available for sale 45

Inventory Cost 20 X $10.80 = $216.00

Tot. M'dse. Available for sale $486.00


- Ending Inventory Cost 216.00
= Cost of M'dse. Sold $270.00

Ending Cost of
Inventory M'dse.
Comparison of results Cost Sold Profit
FIFO $256.00 $230.00 Highest
LIFO 180.00 306.00 Lowest
AVG. Cost 216.00 270.00 Middle