What is LIFO?

LIFO is an inventory management method standing for (Last In First Out). It is a way of determining which items of inventory have been sold during a period and which items remain in stock at the end of the period. This will allow a business to determine the cost of goods sold and the value of the closing inventory. A method is needed because all items are not purchased at the same price.

The LIFO method assumes that the goods most recently put into inventory are used first. The inventory purchased last (in) is sold first (out).

For further information on LIFO

Learn a new bookkeeping term

Random bookkeeping terms for you to discover.

Link to this page

Click in the box to copy and paste this lifo definition link to your site.

Return to the Dictionary

LIFO December 20th, 2017Team

You May Also Like

Related pages

how to calculate payback periodhow to calculate ratios in excelcapital lease and finance leaseallowance method for uncollectible accountsdiscounted cash flow formula in excelmarkup margin formulatemplate accounting excelconsignment sales revenue recognitionfree purchase order form template excelpetty cash balance sheet exampleinventory spreadsheet examplesscrap disposal formattimes interest earned ratio calculatorcalculate fventry for allowance for doubtful accountsoverhead journal entrycash flow calculator excelfob calculationgross profit margin vs markupmarkup calculator percentagedeferred revenue entriesaccounting basic quiznumber of days sales in receivables formulasample interview questions and answers for bookkeeperaccounting entries for capital leasethe purpose of closing entriesannuity payment excelmarkup to margin calculatorcalculation of deferred tax on depreciationworksheet example accountingwhat are consumable storeszero coupon bond journal entryaccounting for leases journal entriesbooking depreciationperiodic inventory systemsallowance for doubtful accounts income statementaccounts payable turnover calculatortwo column journal accountingten column worksheet accounting exampleexcell pmtvertical analysis for income statementallowance for doubtful debts definitionstraight line method of depreciation calculationbasic accounting and bookkeepingaccounts receivable journal entry exampleexamples of annuity duefob destination accountingaccounts payable internal control procedureswriting off bad debt journal entryfixed manufacturing overheadmeaning of journal voucher in accountingimprest system examplethe allowance for uncollectible accounts iscushioning definitionmarkup calculator ukunearned revenue meaningfinal step in the accounting cyclerequisition slip form samplewrite off accounts receivable journal entrydirect ppvjournal entries of depreciationimprest systemmarkup percent calculatorlease incentive accounting treatmentexample of annuity duetransposition error examplepreferred stock redeemableformula for total asset turnover ratiotrading securities journal entrieshow to prepare a contribution margin income statementprepare bank reconciliation statement exampleformula for declining balance depreciation