How to Calculate FIFO and LIFO
Each time inventory is purchased, the cost is recorded and added to the inventory account. This requires meticulous record-keeping to ensure that the oldest costs are used first. By assigning…
First-in, first-out FIFO method in perpetual inventory system
Accounting standards are only concerned with cost flow assumptions as they affect inventory valuation in the financial statements. Since under FIFO method inventory is stated at the latest purchase cost,…