any accountants? what is he difference between FIFO, LIFO (perpetual method) and FIFO,LIFO (periodic method)?

Answer 1

The simplified lectures at the 2 sites below will demonstrate the differences.

Answer 2

In fact, there is no difference. The ending inventory showed under the FIFO periodic and FIFO perpetual is still the same. For this reason, the Cost of Goods Sold under FIFO periodic and FIFO perpetual is also the same. Same also as to LIFO periodic and LIFO perpetual.

The only difference is that under the perpetual method (either FIFO or LIFO), the entity has an individual record for each inventory of the firm. The record contain information about the beginning balance, purchases and sales of the product. For this reason, the firm knows how many are in the beginning balance, how many are purchase during the year, how many are sold and how many are in the ending inventory.

Answer 3

why it is necessary to estimate inventory?