Therefore, the calculation of cost of goods sold requires an assessment of total goods available for sale, from which ending inventory is subtracted. With a periodic system, the ending inventory is determined by a physical count. In that process, the goods held are actually counted and assigned cost based on a consistent method. The actual ... zIf one wants to predict future cost of good sold, one would prefer the most recent measure of inventory cost of goods sold. zLIFO provides a more recent measure of cost of goods sold than FIFO if no LIFO liquidation occurs.
Ending Inventory Valued using FIFO is: Cost of Goods Sold for the Year is: Cost of Goods Sold Units Total Cost 700 $ 2,100.00 200 $ 700.00 0 $ - 4 Steps to Calculate Cost of Goods Sold Using FIFO 1. List all information on Inventory Costing Sheet 2.