Chapter 2 – Understand the Costing Method
Chapter 2.3 – LIFO 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: