A great resource to help students practice calculating FIFO (First-In, First-Out) and weighted-average costing in a periodic inventory system. Students are provided with several purchase transactions as well as a sale and asked to calculate ending inventory and cost of goods sold under each method.
Students must also calculate gross margin (gross profit) for each costing method to reinforce that sales revenue remains the same no matter which method is chosen. It also helps students understand why the gross margin differs and this can lead to conversations about operating in an inflationary vs. a deflationary purchasing environment.
The resource also comes with a step-by-step solution to guide students through the calculation process. It can be used as a small group activity or as an individual one.