Inventory Acct. Help?

Question

Do the terms FIFO and LIFO refer to techniques used in determining quantities of the various classes of merchandise on hand? Explain. (i know what FIFO and LIFO stand for)

Answer 1

Terms like FIFO and LIFO are called cost formulas and are used to calculate cost of merchandise inventory usually at the end of a period. The sites below give very good explanations, with illustrations.