LIFO Calculator (Last In, First Out)

LIFO calculator helps you calculate the remaining inventory value, cost of goods sold, revenue, and profit.

Please enter the first unit purchase price and the number of units, the second unit purchase price and the number of units, and finally, add the total number of units sold and their selling price.

LIFO (Last in, First out) is an accounting method that considers that inventory, raw materials, and components purchased most recently were sold first. This accounting system assumes the last bought is sold first.

It also means the items entered last are removed first.

FIFO is the opposite method of LIFO which considers the times bought first are sold first.

You might want to determine consumer surplus or net operating revenue.

References

• Morse, D., & Richardson, G. (1983). The LIFO/FIFO Decision. Journal of accounting research, 106-127.
• Dopuch, N., & Pincus, M. (1988). Evidence on the choice of inventory accounting methods: LIFO versus FIFO. Journal of Accounting Research, 28-59.
• Eilon, S. (1961). FIFO and LIFO policies in inventory management. Management Science, 7(3), 304-315.