100 Units @ $10.00
200 Units @ 10.50
200 Units @ 11.50
100 Units @ 12.00
Each company sold 400 units but A company uses LIFO inventory costing and Z company uses FIFO inventory costing. Assume there was no beginning inventory. Calculate the value of ending inventory for both companies and the cost of goods sold for both companies. Explain?
With LIFO (last in first out), the most expensive goods are considered to be sold first (since prices generally go up over time). In this case, that would mean that the following 400 ...