FIFO method will be chosen Example given below The weighted average method will be better in case of decreasing prices. 

Explanation:

units rate amt 100 5 500 200 6 1200 300 7 2100 now assume 200 units are sold (periodic method) 3800 cost of 200 units as per FIFO $1,100 cost as per weighted average rate 6.333333 3800/600 1266.667 this means the FIFO method will give better profit 

Please give me another example of this. I'm confused about how the rate 6.333333 was gotten