Fifo For Inventories

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Finance

Fifo For Inventories financial calculator.

Formula

FIFO: Ending = (Beginning + Purchased - Sold) × Latest Cost
  • FIFO = First In, First Out
  • Assumes oldest inventory sold first
  • Results in lower COGS during inflation

Inventory FIFO

Inputs
  • Beginning Inventory Units: 100 count
  • Units Purchased: 200 count
  • Cost per Unit Purchased: 10 $
  • Units Sold: 150 count

100 + 200 - 150 = 250 units ending at $10 = $2,500 ending value.

Frequently asked questions

When should I use FIFO?
FIFO works best for perishable goods and when costs are stable. Results in higher profits during inflation.
What's the difference from LIFO?
LIFO (Last In, First Out) sells newest inventory first, resulting in lower profit but higher COGS during inflation.