SOLUTION: Accounting procedures allow a business to evaluate their inventory at LIFO (Last In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods inventory

Question 251977: Accounting procedures allow a business to evaluate their inventory at LIFO (Last In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods inventory (in $ thousands) for five products both ways. Based on the following results, is LIFO more effective in keeping the value of his inventory lower?
Product FIFO (F) LIFO (L)
1 225 221
2 119 100
3 100 113
4 212 200
5 248 245

Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!
Product FIFO LIFO
1 225 221
2 119 100
3 100 113
4 212 200
5 248 245
------------------------- ADD
*904**875
LIFO RESULTS IN A SMALLER INVENTORY.
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