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Inventory Cost Flow Assumptions Comparison: FIFO, LIFO, Average Cost

Learn how different inventory cost flow assumptions impact financial outcomes with examples of FIFO, LIFO, and Average Cost methods. Explore scenarios and calculations for better understanding.

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Inventory Cost Flow Assumptions Comparison: FIFO, LIFO, Average Cost

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  1. Example Exercise 1 Inventory Cost Flow Assumptions

  2. Example Exercise 1 Inventory Cost Flow Assumptions - FIFO

  3. Example Exercise 1 Inventory Cost Flow Assumptions - LIFO

  4. Example Exercise 1 Inventory Cost Flow Assumptions–Average Cost

  5. 2 Example Exercise 1 1 Sales $70 Less cost of merchandise sold (45) Gross Profit $25 Ending Inventory ($48 + $51) $99 (a) FIFO

  6. 2 Example Exercise 1 1 Sales $70 Less: cost of merchandise sold (51) Gross Profit $19 Ending Inventory ($45 + $48) $93 (b) LIFO

  7. 2 Example Exercise 1 1 Sales $70 Less: cost of merchandise sold (48) Gross Profit $22 Ending Inventory ($48 x 2) $96 (c) Average Cost

  8. Example Exercise 1 1 1  For Practice: PE 1A, PE 1B

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