Chapter 2 – Understand the Costing Method

last in, first out (LIFO) 
– last item of inventory purchased is the first one sold.

During periods of inflation, LIFO will result in:

a. highest cost of goods sold

b. lowest net income

Example of the Last-in, First-out (LIFO) Method:

Example of the Last-in, First-out Method in the AutoCount stock card: