Financial Accounting (ACCT 102) Inventory Costing (FIFO, LIFO, Weighted Average) Practice Problems
University of Texas at Austin
Financial Accounting (ACCT 102) | Practice Problems

Overview
Practice problems on inventory costing methods, COGS, ending inventory, and how FIFO/LIFO affect financial statements in inflation scenarios.

Key topics
•FIFO vs LIFO mechanics
•weighted average cost
•COGS and ending inventory
•income statement and balance sheet effects

Suggested study tasks
•compute COGS and ending inventory under FIFO and LIFO
•compute weighted average unit cost and apply it
•explain how method choice changes gross profit

Common pitfalls
•mixing units and costs across layers
•forgetting to update running totals
•stating the statement impact without checking the numbers