Lifo means last in first out. This is an inventory management technique that says that the cost of goods sold should be made up of the cost of most recently purchased units plus the cost of any inventory from old stock.
For example, a company purchased 1300 motorbikes for $12,000 each and sold 900 bikes in January. In February the company purchased 1800 bikes for $12700 each and sold 2000 bikes. The LIFO basis says that the cost of goods sold in January will be $10.8 m and $25.26 m in February.
Cost of goods sold in May = ($12000 x 900 bikes) = $10.80 m
Cost of goods sold in June = ($12700 x 1800 bikes + $12000 x 200 bikes) = $25.26 m
Taylor Corporation has used a periodic inventory system and the LIFO cost
At the beginning of 2018, Quentin and Kopps (Q&
Bosco Company adopted the dollar-value LIFO retail method at the
Esquire Inc. uses the LIFO method to value its inventory.
In 2018, Hopyard Lumber changed its inventory method from LIFO to
Johnson Corporation began 2018 with inventory of 10,000 units of
The Churchill Corporation uses a periodic inventory system and the LIFO inventory
Cast Iron Grills, Inc., manufactures premium gas barbecue grills.
Amiras Corporation began operations on January 1, 2014, with a
The Pyramid Company has used the LIFO method of accounting for inventory
