FIFO and Moving Average calculation difference

Valuation Rate of an item is calculated based on the total expense incurred to make the product available for sale like freight, labour, cost of raw materials, etc.

In ERPNext, Valuation Rate is calculated based on the valuation method selected for the particular item. 
An item can have either FIFO or Moving Average selected as a valuation method. 

Consider the following example to know how it impacts your stock: