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What is the ending balance using FIFO and LIFO?


Purchase 10000 units at 42 cents and 5965 units at 45 cents and 7580 at 49 cents the quantity on hand 2390 how do i calculate the FIFO and LIFO

449 day(s) ago

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MelonsO 		You need to know how many products you sold and how much they were. In first in first out, you start with the product on hand and multiply that by the cost. You then take the next products ordered and multiply it by the cost..Keep on adding the first products purchased until you reach the number of products sold.

For Last in Last out, you just do the opposite.

Posted 449 days ago

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BruinCPA 		Assuming the order purchased is the order given, you have:

Inventory:
10,000*.42
5,965 * .45
7580 *.49
The best way I find to answer these is to do a vertical list like the one above. This makes answering the questions very easy, FIFO subtract until you have the on hand remaining, for LIFO just start at the top and work down the layers until you have the amount on hand covered.

FIFO (First in first out, keeps latest inventory on hand)
2390*.49=1171.10

LIFO (last in first out, leaves earliest inventory on hand)
2390 * .42 = 1003.80

Hope this helps!!

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