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Product X Units 10 15 12 8 45 Unit Cost Total Cost $8.00 $80.00 10.00 150.00 12.00 144.00 14.00 112.00 $486.

00

Beginning Inventory Feb. 15 Purchase June 15 Purchase Nov. 15 Purchase Tot. M'dse. Available for sale Ending Inventory = 20 units

FIFO Nov. 15 Purchase June 15 Purchase

Units 8 12

Unit Cost Total Cost $14.00 $112.00 12.00 144.00 20 newest items would be in inventory

Inventory Cost

20

$256.00

Tot. M'dse. Available for sale - Ending Inventory Cost = Cost of M'dse. Sold

$486.00 256.00 oldest units were sold $230.00

LIFO Beginning Inventory Feb. 15 Purchase

Units 10 10

Unit Cost Total Cost $8.00 $80.00 10.00 100.00 20 oldest items would be in inventory

Inventory Cost

20

$180.00

Tot. M'dse. Available for sale - Ending Inventory Cost = Cost of M'dse. Sold

$486.00 180.00 newest units were sold $306.00

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

Inventory Cost

20

X

$10.80

=

$216.00

Tot. M'dse. Available for sale

$486.00

- Ending Inventory Cost = Cost of M'dse. Sold Ending Inventory Cost $256.00 180.00 216.00 Cost of M'dse. Sold $230.00 306.00 270.00

216.00 $270.00

Comparison of results FIFO LIFO AVG. Cost

Profit Highest Lowest Middle