How to take inventory using FIFO method?

FIFO stands for First-in-First-out, this means any merchandise that comes in first will be sold at that specific price first. For example, say I have candy bars, I have 50 on hand that cost me 85 cents, I later purchased 50 more that cost me 1.00. When I sale my products, say I sold 75, my inventory would go like this to figure out what I have on hand.

My original inventory is

50 @ .85 = 42.50

50 @ 1.00 = 50.00

Total ______92.50

Since I sold 75 bars total and I'm using FIFO, that means the first ones I purchased go out first....

50 @ .80 = 42.50

25 @ 1.00 = 25.00

Total______ 67.50

This leaves us on hand

25 @ 1.00 = 25.00