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FIFo lifo

11 November 2021

could you please tell me e what is mean by first in first out method last in last out method how can I do in practically what is the analysing procedure of this FIFA only give some examples

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CA Aakarsh Jain (CA) (10431 Points)
Replied 11 November 2021

FIFO (“First-In, First-Out”) assumes that the oldest products in a company's inventory have been sold first and goes by those production costs. The LIFO (“Last-In, First-Out”) method assumes that the most recent products in a company's inventory have been sold first and uses those costs instead.

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MPR Sanjay Kumar (3118 Points)
Replied 11 November 2021

Thank you 😊 very much my honourable

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 12 November 2021

First In, First Out (FIFO) is an accounting method in which assets purchased or acquired first are disposed of first. FIFO assumes that the remaining inventory consists of items purchased last. An alternative to FIFO, LIFO is an accounting method in which assets purchased or acquired last are disposed of first