I need to understand how to do the above valuation accounting it is very confusing to me could you create some steps so that I can follow or a simpler way to understand it. Thank you.

:confused:

lifo is last in first out. Fifo is first in first out.
They're a way of calcultating costs.
Say u buy 5 widgets at 5 dolalrs in month 1, don't sell any
then u buy 10 widgets at 10 dollars in month 2
then you sell 12 widgets. How much was the cogs?
using last in first out, the 10 went first, so $100, then 2 more at 5$, so a total of $110.00
using the first in first out, you sold all 5@ $5.00, or 25, then 7 @ 10, or 70 = total of $95.oo

I'm not to sure what avco is about, still in my second accounting class.

Avco is average cost of goods sold
Total purchases divided by its units

I have this question on fifo and avco please anyone can help.
On 1st dec abc company held 300 units goods of 5$
Goods purchased:
11th December 500 units at 11$
19th dec 500 units for 12$
26th December 500 units for 14$

Goods sold:
13th dec 600 units for 18$
21th dec 400 units for 18$
26th dec 200 units for 18$