43 - LIFO Newest items are assumed to be sold first Ending...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Inventory Costing Methods Specific-unit-cost Average cost First-in, first-out (FIFO) Last-in, first-out (LIFO) Specific-unit-cost Each item in inventory can be separately identified Used for unique items Cars, fine jewelry Too expensive for homogeneous items Average-cost An average of inventory costs Cost of goods available FIFO Oldest items assumed to be sold first Ending inventory will consist of most recent items purchased
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: LIFO Newest items are assumed to be sold first Ending inventory consists of oldest items in inventory E6-15 Units Cost Beginning inventory 5 $160 $800 Oct. 15 Purchase 11 $170 $1,870 Oct. 26 Purchase 5 $180 $900 Units available 21 $3,570 Ending inventory 8 units Units sold ______ units E6-15 Specific Unit Cost Ending inventory = E6-15 Average Cost...
View Full Document

Ask a homework question - tutors are online