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\nCalculate the Cost of Ending Inventory Using the LIFO Method
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This calculator determines the value of your ending inventory using the Last-In, First-Out (LIFO) method, which assumes the most recent inventory purchases are sold first.
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Inputs
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Key Intermediate Values
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Ending Inventory Units:
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Ending Inventory Cost:
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Cost of Goods Sold (COGS):
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Explanation
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The LIFO method assigns the most recent costs to the units sold, leaving the older, possibly lower costs in ending inventory. This can result in a lower taxable income during periods of rising prices.
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Chart of Inventory Flows
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Table of Inventory Layers
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| Inventory Layer | Units | Cost per Unit | Total Cost |
|---|
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