Accounting 11?
A person you work for in the accounting deparment is confused about FIFO and LIFO as methods of charging costs of goods sold against revenue. Explain, for each method, which units are used to calculate the cost of the ending inventory and which financial statement is emphasized, and indicate which method results in a lower net income (assuming rising cost per unit).
Answers:
Nah. *You* explain it, since this is obviously homework. Your instructor doesn't care if I know this stuff.
Do your own homework. What a lame attempt at getting someone else to do your work.
If FIFO mean First In First Out then ending inventory would be done using newer units in. If LIFO means Last In First Out then ending inventory is calculated using older units sitting in inventory. Inventory is shown on the Balance Sheet but Cost of Goods sold is used on Income Statement. Both would be affected. I'll let you figure out the last part on your own. I did!
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