LIFO

LIFO VERSUS FIFO: UPDATING WHAT WE HAVE LEARNED Nicole Thorne Jenkins Doctoral Student in Accounting Morton Pincus Associate Professor of Accounting College of Business Administration The University of Iowa 108 PBAB Iowa City, IA 52242-1000 U.S.A. 319/335-0915 FAX 319/335-1956 morton-pincus@uiowa.edu September 1998 (version 1.2) LIFO VERSUS FIFO: UPDATING WHAT WE HAVE LEARNED 1.0 INTRODUCTION The statutory mandate in U.S. tax law that firms using the last-in first-out (LIFO) inventory

FIFO and LIFO accounting Methods are accounting techniques used in managing inventory and financial matters involving the amount of money a company has tied up within inventory of produced goods, raw materials, parts, components, or feed stocks. FIFO stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact newest physical object has been tracked and sold; this is just an inventory technique. LIFO stands for last-in

known as (FIFO) FIRST –IN –FIRST- OUT and the second method is FIRST-OUT. Before going looking the FIFO and LIFO we shout know the meaning of FIFO and LIFO. what mean FIFO? FIFO is a contraction of the term "first in, first out," and means that the goods first added to inventory are assumed to be the first goods removed from inventory for sale. LIFO is a contraction of the term "last in, first out," and means that

FIFO and LIFO accounting Methods are accounting techniques used in managing inventory and financial matters involving the amount of money a company has tied up within inventory of produced goods, raw materials, parts, components, or feed stocks. FIFO stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact newest physical object has been tracked and sold; this is just an inventory technique. LIFO stands for last-in

Survey of Stacks and Queues Have you ever been stuck in a line, a few, hundreds, or even thousands of people ahead of you? Well, this is exactly what a stack structure is all about. With a stack data structure, you are placed inside of a queue or we can use a line for example. To prevent customers or people from feeling unfairly placed or cheated this is a great way to make everything go over smoothly. Let's take a stack of plates for example. Consider the plates being stacked over one another on

K-Mart uses the FIFO (First in-First out) method, Sears Domestic uses LIFO (Last in-First out) and Sears Canada uses the Average Cost method. Benefits to each would be reporting higher income and real time current inventory cost for the FIFO cost assumption, Lower income taxes and real time income due to inflation for LIFO cost assumption, and Average Cost assumption is a good middle ground between the other two. I think the LIFO method is actually the best method to use. Even though this method does

The lifo recapture tax law is as follows. When a entity has inventory acquired under the lifo method, the company must have must have its remaining income provided for its last year as a c-corp. If the company had assets that were previously recognized under a c-corporation it must include those assets under the recapture tax law. The recapture method is the amount left over the available inventory after the remaining inventory is used and the fifo over the amount using the lifo method at the end

in this case, also will influence the ending inventory for the two remaining items. 8. LIFO and FIFO have opposite effects on the inventory amount reported under assets on the balance sheet. The ending inventory is based upon either the oldest unit cost or the newest unit cost, depending upon which method is used. Under FIFO, the ending inventory is costed at the latest unit costs, and under LIFO, the ending inventory is costed at the oldest unit costs. Therefore, when prices are rising,

Utilizing the last in, last out approach encourages the company to financially succeed. As far as the adjustments that Amazon.com has made using the LIFO approach, the company experienced a net gain in profit from 2000 to 2004. According to the financial report, in 2000 the company was at an income loss of $1,411,273 while in 2004 they experienced a positive income of $588,451 (p. 25). As per any company

errors. Overstatement of purchases and ending inventory. Period vs. product costs. Reporting Purchase Discounts Lost. Cost flow assumption. FIFO periodic vs. perpetual system. Purchase commitments. Using LIFO for reporting purposes. LIFO liquidation. LIFO liquidations. Dollar-value LIFO Dollar-value LIFO method.