FIFO (First In, First Out):

The first stocks are sold first. The remaining stocks are valued at the last purchase price.

LIFO (Last In, First Out):

The last stocks are sold first. The remaining stocks are valued at the first purchase price.

Average Cost:

Average Price = Total Cost / Total Quantity

Stock Entries:

100 units × $ 10
200 units × $ 12

Sales: 150 units

FIFO: (100 × $ 10) + (50 × $ 12) = $ 1,600

LIFO: (150 × $ 12) = $ 1,800

Average: 150 × ((100 × $10 + 200 × $12) / 300) = $ 1,700