Inventory valuation
FIFO vs weighted average — COGS and remaining stock (NAS 9)
Lots: «qty price» per line
| FIFO | Weighted average | |
|---|---|---|
| Cost of issue | 12,800 | 13,097.22 |
| Stock remaining (20 pcs) | 10,775 | 10,477.78 |
Allowed methods: FIFO, weighted average, specific identification, retail, standard cost. LIFO is prohibited. In rising prices FIFO gives lower COGS and higher profit (and tax). Method is fixed in the accounting policy.