LIFO

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


accrued expenses and deferred incomehow to calculate cost from selling price and marginmeaning of double entry bookkeepingconsignee accountpercentage of completion method accountingcapital gearing ratio meaningretained profit meaningwhat does eom meanjob costing journal entries examplesannuity growth ratein reimbursing the petty cash fundaccounting for stockholders equityexamples of contra accountsintercompany transactions accounting examplescommon size ratio formulaunder a perpetual inventory systemleveraged lease accounting exampleadvance from customer journal entryfob shipping point fob destinationtotal asset turnover formulahow to calculate depreciation using straight line methodcarriage inwards definitionmarkup to margin calculatorjournal entry accounts payablejournal entry for bills receivablenotes payable adjusting entryformula for reducing balance methodunclassified balance sheet exampleamortization calculator excelphysical inventory count sheet excelcheque receipt formatprofit margin ratio formula accountingwhat is an allowance for doubtful accountspv fv formulaadjusting entry for supplies usedexamples of owner's equityballoon payment calculator excelhow to find the contribution marginwhat is grn in inventoryformula of debtors turnover ratiocogs margin formulafreight prepaid and freight collectis prepaid insurance a deferralowner's drawingshow to calculate vertical analysispayment booklet templateaccounts receivable interviewwhat is accrued expensecalculate lifo reservejournal entry for leasehold improvementsa company that receives an interest bearing note receivable willdeferred tax journal entrybookkeeping exam questionssales tax quizdeferral definition accountingpayroll suspense accountdefinition of trade payablesgift card revenue recognitionlifo perpetual inventory method examplebookkeeping vouchereffective annual rate of interest formulawrite off obsolete inventorywhat is accrued expense payablefixed asset register template freemonetary unit assumption definitionpercentage of completion revenue recognition journal entrieshow to calculate double declining balance depreciationamortization calculation excelcash voucher template excelaccounting prime costperpetuity npvadjusting entries for interestwhy we prepare bank reconciliation statementledgers bookkeepingleverage gearingpre operative expenses meaningunrealized gain on trading securitiesaccrued salaries definition