How to calculate cost of sales (with examples provided)

Month	Units Purchased	Cost per Shirt	Value
January	250	£5	£1,250
February	250	£7	£1,750
	500 total purchased

	FIFO (First in, first out)	LIFO (Last in, first out)	Avg. weight cost
Units sold	225	225	225
Cost per shirt	£5	£7	£6
Additional inventory (total units purchased x cost per unit)	500 x £5 = £2,500	500 x £7 = £3,500	500 x £6 = £3,000
Ending inventory (total units purchased – total units sold x cost per unit)	(500-225) x £5 =£1,125	(500-225) x £7 =£1,575	(500-225) x £6 =£1,350
Cost of sales formula (beginning inventory + additional inventory – ending inventory)	0 + £2,500 – £1,125	0 + £3,500 – £1,575	0 + £3,000 – £1,350
Cost of sales total	£1,375	£1,925	£1,650