Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
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Inventory Valuation Methods: Specific Identification, FIFO, LIFO …
12K viewsAug 19, 2014
Study.comSherri Hartzell
Replying to @i in intro accounting class we learn three inventory cost flow assumptions (specific identification tracks each item and is therefore not an assumption): FIFO (first-in first-out), LIFO (last-in first-out), and average cost. We use these to compute our cost of goods sold. Even though perpetual inventory systems are much more common for large companies, I illustrate these cost flow assumptions using a periodic system. #accounting #study #explained #inventory #lifo #fifo #averagecost
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Replying to @i in intro accounting class we learn three inventory cos…
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