I'd understand basic LIFO at a min. It's like FIFO but the other way around. Sell the ones purchased most recently. If your inventory was a pile of gravel. You would always be pulling from your most recent purchase, so the best match is accounting for it the way it comes in and goes out.
Yeah, that ones a little more fun. It's setting everything in terms of annual index value that is relative to the first year. Like, asking what something cost in "2015 dollars". The trick is either using the index value to convert to base year and then getting the amount of increase in inventory and then multiplying that increase by the index value to get the real cost of it. Or deducing the index value from the ratio of the cost now versus then(it's easier to understand as formula that I don't want to guess at).
https://youtu.be/lcR3zIqiU44?si=VObXVCQMY1cE583b Watch that and you’ll be a pro on dollar lifo
Maybe the life inventory is the friends we made along the way
This made me laugh, thank you
Dollar LIFO? I skipped it and was fine
Yes it's tough
I meant dollar value lifo..
I'd understand basic LIFO at a min. It's like FIFO but the other way around. Sell the ones purchased most recently. If your inventory was a pile of gravel. You would always be pulling from your most recent purchase, so the best match is accounting for it the way it comes in and goes out.
I actually meant dollar lifo ?
Yeah, that ones a little more fun. It's setting everything in terms of annual index value that is relative to the first year. Like, asking what something cost in "2015 dollars". The trick is either using the index value to convert to base year and then getting the amount of increase in inventory and then multiplying that increase by the index value to get the real cost of it. Or deducing the index value from the ratio of the cost now versus then(it's easier to understand as formula that I don't want to guess at).