fifo and weighted average method
The main difference between weighted average cost accounting, LIFO, and FIFO methods of accounting is the difference in which each method calculates inventory and cost of goods sold.The weighted average cost method uses the average of the costs of the goods to assign costs.In other words, weighted average uses the formula: Total cost of items in inventory available for sale divided by total number of units available for sale.In contrast, FIFO (first in, first out) accounting means that the costs assigned to goods are the costs for the first goods bought.he weighted average cost method uses the average of the costs of the goods to assign costs. In other words, weighted average uses the formula: Total cost of items in inventory available for sale divided by total number of units available for sale.