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
Algebra ->
Probability-and-statistics
-> 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
Log On
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
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.