What is the LIFO reserve, and when is it used?
Concept introduction:
FIFO method:
FIFO Stands for First in First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.
LIFO method:
LIFO Stands for Last in First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased.
To indicate:
The inventory costing methods that shall produce the smallest payment of taxes in case of prices are rises.
Under the LIFO method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated includes the cost of latest goods purchased. Hence the cost of goods sold shall be highest in the case...
Accounting Information Systems
Financial & Managerial Accounting
Corporate Financial Accounting
Brief Principles of Macroeconomics (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Foundations of Business (MindTap Course List)
Probability and Statistics for Engineering and the Sciences
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Essentials of Business Communication (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Principles of Economics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Financial And Managerial Accounting
Principles of Information Systems (MindTap Course List)
Database Systems: Design, Implementation, & Management
Fundamentals of Information Systems
Database Systems: Design, Implementation, & Management
A Guide to SQL
Principles of Information Security (MindTap Course List)
Fundamentals of Information Systems
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Principles of Information Systems (MindTap Course List)
Automotive Technology: A Systems Approach (MindTap Course List)
Precision Machining Technology (MindTap Course List)
Mechanics of Materials (MindTap Course List)
Fundamentals of Geotechnical Engineering (MindTap Course List)
Management Of Information Security
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
Solid Waste Engineering
Principles of Geotechnical Engineering (MindTap Course List)
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Electric Motor Control
International Edition---engineering Mechanics: Statics, 4th Edition
EBK ELECTRICAL WIRING RESIDENTIAL
Steel Design (Activate Learning with these NEW titles from Engineering!)
Automotive Technology
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Structural Analysis
Network+ Guide to Networks (MindTap Course List)