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Fifo Lifo calculator
Enter units, their costs, and total units sold. Choose a method from the FIFO LIFO calculator and click calculate.
Table of Contents:
Fifo Lifo Calculator
FIFO LIFO calculator is an online finance tool that finds the value of COGs and ending inventory on the average cost method. This calculator gives a detailed table which contains:
- Remaining units
- Units sold
- Ending inventory value
- CoG sold
What are FIFO and LIFO?
Both of these are financial terms used in inventory management. FIFO means “First-in-first-out” and LIFO means “last-in-first-out”. Companies use these methods to sell their goods.
When a company opts for FIFO, it first sells the product purchased first. But a company that chose LIFO will sell its new items first.
Ending Inventory:
It is the total price of products in stock after a certain auditing time.
How to calculate FIFO and LIFO?
Example:
Calculate the COGs of 15 units through the LIFO method for a company whose inventory data for the last three months is as follows.
| Month | Units sold | Price per unit | |
| 1 | January | 3 | 17$ |
| 2 | February | 10 | 19$ |
| 3 | March | 6 | 18$ |
Step 1: Start counting 15 units from the march and go upwards.
Solution:
The first six units are from March.
The next nine units are from February.
Step 2: Multiply the units by their respective price.
March = 6 x 18$ =108$
February = 9 x 19$ = 171$
Step 3: Add this amount.
=171$ + 108$
= 279$
References:
- What are FIFO and LIFO? Investopedia.
- How to calculate LIFO and FIFO? FreshBooks. (2023, April 5).
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