Trekking Company has 55 identical units available, bought at four different prices, for $5,990 total.
$4,570
cost of goods sold
$4,730
cost of goods sold
$4,622
cost of goods sold
$4,582
cost of goods sold
Sales were $6,050 in every case — only the cost side moves.
tracks the actual cost of each unit sold. assumes the oldest units leave first. assumes the newest units leave first. blends every unit on hand into one cost.
None of them change the . Each one only decides how that fixed total splits between cost of goods sold and ending inventory — which is why gross profit differs by method even though the units and prices do not.