What is fifo and lifo method..?

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18 May 2015 Kindly described the LIFO and FIFO method..??

Arpit Shah

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18 May 2015 First-In, First-Out (FIFO)
This method assumes that the first unit making its way into inventory is the first sold. For example, let's say that a bakery produces 200 loaves of bread on Monday at a cost of $1 each, and 200 more on Tuesday at $1.25 each. FIFO states that if the bakery sold 200 loaves on Wednesday, the COGS is $1 per loaf (recorded on the income statement) because that was the cost of each of the first loaves in inventory. The $1.25 loaves would be allocated to ending inventory (appears on the balance sheet).

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Arpit Shah

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18 May 2015 Last-In, First-Out (LIFO)
This method assumes that the last unit making its way into inventory is sold first. The older inventory, therefore, is left over at the end of the accounting period. For the 200 loaves sold on Wednesday, the same bakery would assign $1.25 per loaf to COGS, while the remaining $1 loaves would be used to calculate the value of inventory at the end of the period.

Read more: http://www.investopedia.com/articles/02/060502.asp#ixzz3aSu3e48x
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Arpit Shah

Arpit Shah (Expert)
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18 May 2015 http://accounting-simplified.com/financial-accounting/accounting-for-inventory/fifo-method.html