How do you do weighted average LIFO and FIFO?

Weighted Average vs. FIFO vs. LIFO: Example Weighted Average Cost: Cost of a chair: $8,000 divided by 500 = $16/chair. Cost of Goods Sold: $16 x 100 = $1,600. FIFO: Cost of goods sold: 100 chairs sold x $10 = $1,000. LIFO: Cost of goods sold: 100 chairs sold x $20 = $2,000. Click to see full answer. Besides, why the FIFO method is considered more accurate compared to weighted average method?The FIFO and specific identification methods result in a more precise matching of historical cost with revenue. However, FIFO can give rise to paper profits, while specific identification can give rise to income manipulation. The weighted-average method also allows manipulation of income.Secondly, how do I calculate a weighted average? To find your weighted average, simply multiply each number by its weight factor and then sum the resulting numbers up. For example: The weighted average for your quiz grades, exam, and term paper would be as follows: 82(0.2) + 90(0.35) + 76(0.45) = 16.4 + 31.5 + 34.2 = 82.1. In respect to this, what is the difference between FIFO and weighted average? According to the Accounting for Management website, the main difference between the FIFO and weighted average method is in the treatment of beginning work-in-process or unfinished goods inventory. The weighted average method includes this inventory in computing process costs, while the FIFO method keeps it separate.What are the disadvantages of FIFO?The first-in, first-out (FIFO) accounting method has two key disadvantages. It tends to overstate gross margin, particularly during periods of high inflation, which creates misleading financial statements. Inflated margins resulting from FIFO accounting can result in substantially higher income taxes.

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