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Inventory Cost Flow Methods Explained by Tuyet Anh is a document available to read on EtoBox.
The document explains three inventory cost flow methods used in a perpetual inventory system: FIFO, LIFO, and average-cost. FIFO recognizes the cost of the earliest goods purchased first, resulting in a cost of goods sold of $6,200 and ending inventory of $5,800. LIFO, on the other hand, recognizes the cost of the latest goods purchased first, leading to a cost of goods sold of $6,300 and ending inventory of $5,700, while the average-cost method calculates a moving average after each purchase, resulting in
- Author
- Tuyet Anh
- Language
- EN