Purchases Sales 50 units at $50/unit 25 units at $55/unit 60 units at $45/unit 30 units at $50/unit 70 units at $40/unit 45 units at $45/unit
Purchased 50 + 60 + 70 = 180 units. Sold 25 + 30 + 45 = 100.
Ending inventory = 180 – 100 = 80 of the first units purchased.
(50 units)($50/unit) + (30 units)($45/unit) = $2,500 + $1,350 = $3,850.
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