avco

lculation **Average Cost per Unit:** Total cost = (100 x $10) + (100 x $12) + (100 x $14) = $1,000 + $1,200 + $1,400 = $3,600. Total units = 300. Average cost = $3,600 / 300 = $12 per unit. **COGS:** 150 units x $12 = $1,800. **Ending Inventory:** 150 units x $12 = $1,800. This exampl

g profitability, taxation, and stock valuation. The choice of method depends on factors such as industry standards, inventory turnover, price volatility, and regulatory requirements. The three primary methods are: FIFO (First-In, First-Out) LIFO (Last-In, First-Out) AVCO (Average