Hi I can't figure this out with the fifo and lifo method.
Have seen a similar question but just can't get it .
Kindly advise .
Question:
Began with 73 units @ 23 per yard During the month the company made the following purchases.


March 04 / 113 @ 26
March 12 / 81 @ 30
March 19 / 167 @ 32
March 25 / 44 @ 35

Sales for Month of March:

March 10 / 101 @ 36
March 16 / 68 @ 40
March 26 / 152 @ 42
March 28 / 25 @ 45

Find Cost of goods sold and ending inventory using
1. Average cost
2. FIFO
3. LIFO

Sales revenue for march ?
Gross profit for march?

Which method result in lowest income tax ?

FIFO:

Can you get how many were sold?
Then subtract from the inventory, starting with the opening stock and each time with the purchases. Once you subtracted all that was sold from the purchases and opening inventory, take the cost of the remaining inventory. Can you do that?

346 units were sold for the Month of March.
Next step am not sure am I to subtract 346 from inventory ?

Yes, you will have to subtract from the inventory, starting with those already in the opening inventory (the first units).

There are 478 units in total in the inventory when sales are not taken into consideration, yes?

How many are therefore left in the inventory at the end of march?

It'll be 478 - 346 = 132 units.

Those 132 units consists of the last items purchased, since under FIFO, the oldest items are considered to have been first sold.

The last items are:
44 @ 35

Hmm, there's 132, so we need to take the one just before that too.

167 @ 32

Now, it makes a total of (44+167) = 211. That's too much! So, you take the last 44 items and the rest to make 132, that is (132 - 44) = 98.

So, that means you're taking:
44 @ 35
98 @ 32

Can you work out the value of this inventory? :)