Keywords: FIFO inventory method, First-In First-Out, inventory valuation, inventory accounting, FIFO vs LIFO, COGS, financial reporting, inventory management, GAAP, IFRS Introduction Inventory is one of the most valuable assets for product-based businesses. How a company values and tracks inventory directly affects its cost of goods sold (COGS), tax liabilities, and profitability. One of the most…
Tag: inventory
How to create a LIFO spreadsheet
Using Google Sheets Last in, First out methodology The LIFO methodology assumes that items bought last will be sold first. LIFO holds true when inventory are kept in stacks; thus, the first one sold should be the last one acquired. Using this method, causes that last prices become your cost of goods sold, and older…
How to create an average cost inventory spreadsheet
Using Google Sheets Average Cost Calculation The average-cost method allocates the cost of goods available for sale on thebasis of the weighted-average unit cost incurred for a given period. Several businesses use this methodology when inventory units are similar in nature. Note, the calculated average does not refer to a per unit cost only; instead,…
How to create a FIFO Inventory Spreadsheet
Using Google Sheets Most of us work in businesses that already have their accounting software, that calculates for us all the account balances. We do not need to prepare agings, schedules, or inventory lists since the system takes care of us. However, several times your software does not accomodate your ideal solution for calculating an…