The cost of items purchased first are assigned to the first item sold as shown below:
| Purchased Date | Cost per unit | FIFO |
| 1/1 | $10 | 1st |
| 2/1 | $9 | 2nd |
| 3/1 | $8 | 3rd |
The cost of items purchased first are assigned to the first item sold as shown below:
| Purchased Date | Cost per unit | FIFO |
| 1/1 | $10 | 1st |
| 2/1 | $9 | 2nd |
| 3/1 | $8 | 3rd |