Accounting: The Language of Business - Vol. 2 (Intermediate: Part 164)

Romans 14:12

So then each of us will give an account of himself to God.

Short-Term Operating Assets: Inventory (Part J)

by

Charles Lamson

Last-In, First-Out Method 

The last-in, first-out (LIFO) method assigns the oldest cost to ending inventory and the most recent costs to cost of goods sold as Illustrated in Example 10.9. LIFO is conceptually sound for any company that accumulates inventory, sells units from its most recent acquisitions, and maintains a basic stock (such as a mining company). However, actual Inventory management at most firms does not follow this pattern.

*GORDON, RAEDY, SANNELLA, 2019, INTERMEDIATE ACCOUNTING, 2ND ED., PP. 523-524*

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