LIFO uses the unit costs for Cost of Goods Sold on the income statement and the unit costs for Inventory on the ba

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saul85 [17]

2 years ago

6

LIFO uses the unit costs for Cost of Goods Sold on the income statement and the unit costs for Inventory on the ba

lance sheet.

Business

1 answer:

Tasya [4] · Answer 1 · 2023-03-26T19:15:25+03:00

LIFO uses the last unit costs for Cost of Goods Sold on the income statement and the first unit costs for Inventory on the balance sheet.

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

For example, if beginning inventory consists of 10 units at $10 per unit. In the middle of the month, 10 units were bought at $15 per unit. At the end of the month, 10 units were sold. Using LIFO, the cost of goods sold would be $150 ( 10 x 15). Ending inventory would be $100 ($10 x 10).

To learn more about LIFO, please check: brainly.com/question/13779572

LIFO uses the ______ unit costs for Cost of Goods Sold on the income statement and the ______ unit costs for Inventory on the ba

LIFO uses the unit costs for Cost of Goods Sold on the income statement and the unit costs for Inventory on the ba