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Detailed Comparison Chart
🔹 FIFO Calculation (Sell oldest inventory first)
COGS:
- 100 units @ $10 = $1,000
- 100 units @ $12 = $1,200
- Total COGS = $2,200
Ending Inventory:
- 100 units @ $14 = $1,400
🔸 LIFO Calculation (Sell newest inventory first)
COGS:
- 100 units @ $14 = $1,400
- 100 units @ $12 = $1,200
- Total COGS = $2,600
Ending Inventory:
- 100 units @ $10 = $1,000
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3 Comments
Great comparison! FIFO definitely makes more sense during inflation when trying to show higher profits.
ReplyDelete"This chart was exactly what I needed—bookmarked!"
ReplyDeleteAwesome! Glad it’s a helpful reference for you.
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