Group Disc 3 - Introduction The last-in first-out(LIFO...

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Introduction“The last-in, first-out (LIFO) method assumes that the units sold are the most recent unitspurchased (Spiceland, Sepe, Nelson, 2013, p. 434).” Thus LIFO assigns the cost of newer inventory to cost of goods sold and cost of older inventory to ending inventory account (Jan, 2013).” There are two methods to using LIFO. The first is periodic LIFO. With periodic LIFO “the total of sales (or issues) is matched with the total of purchases (including beginning inventory, if any) at the end of the period (LIFO periodic, 2015). “ With perpetual LIFO “each sale (or issue) is matched with the immediate preceding purchases (LIFO periodic, 2015).” The two can result in two different totals for total cost of goods sold.The Moncrief Company uses LIFO inventory method to determine its cost of goods sold. In 2013, they started out with an inventory of Zelenex that costs $30 per unit and acquired 40,000 additional units at the same price. They are selling these units at $60 per unit. At the end

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