First-in First-out (FIFO) Method

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Description

A method of computing the cost of inventory and the cost of goods sold based on the assumption that the first goods acquired and the first goods sold and that the ending inventory consists of the most recently acquired goods.

Concept Prerequisite

Wikipedia Reference

http://en.wikipedia.org/wiki/FIFO and LIFO accounting

Learning Material

Covered in Topic(s)

 
Inventories & the COGS
System Design: Process costing