Use our LIFO (Last-In, First-Out) calculator to easily determine your Cost of Goods Sold (COGS) and ending inventory value for financial reporting. Understand the impact of LIFO on your profitability and balance sheet, especially in periods of fluctuating costs. This tool simplifies complex inventory valuation, making it accessible for businesses, accountants, and students.
Formula:
The LIFO (Last-In, First-Out) method assumes that the last units purchased are the first ones sold. To calculate:
- Cost of Goods Sold (COGS): Sum the costs of the most recent inventory purchases until the total units sold are accounted for.
- Ending Inventory: Sum the costs of the remaining units from the earliest inventory purchases (including beginning inventory) after units sold are deducted from the most recent layers.