Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?

Fifo ex 6-3 permanent inventory

The data above suggests that it is reasonable to assume inventory levels to be lower using last-in/first-out (LIFO). LIFO is an inventory valuation method used to measure the cost of goods sold and determine a company’s gross profit margin. The LIFO method assumes that the items are being sold in reverse chronological order. Thus, the most recent item is sold first. It means any inventory items that are purchased at a greater price than the current item will be considered as being sold first, thereby decreasing their value.

Example: If 5 units are purchased per month at $55, $45, $40 and $35 respectively, the LIFO process would result in five monthly sales of 5. The fifth unit will be sold first. However, this transaction costs only 30 dollars. In other words, it is cheaper than 50. Last-in-first-out can help lower business costs for different transactions. However, it could lead to outdated stock in inventory due to lack of timely rotation based on market fluctuations during the particular time period. The final decision is made by the company based on its unique circumstances.

How do you place an order?

It takes a few steps to place an order with Us:

  • The first step is to place your order. You will need to provide us with some basic information about your project.
  • Once you have placed your order, you will be taken to our secure payment page.
  • Once we receive your order, we will carefully review it and match you with a writer who has the skills and experience.
  • Stay in contact with the writer and discuss vital details of research.
  • Your completed proposal will be delivered via email within the specified deadline.

You are secure when using our service

It's critical for each client to feel secure. As a result, we at Research Proposal Writing take precautions to secure your data.

Financial security You may securely pay for your purchase using a variety of secure payment methods.
Personal security The personal information of our clients is secure. Nobody else will have access to it.
Academic security We use a specialized program to check every completed paper to ensure that we deliver no-plagiarism samples.
Web security This website is safe from unauthorized breaches. We maintain our privacy management in line with the latest laws and regulations.

You can get help placing your order. If you have any questions about our services, please contact us. Our support staff is accessible 24 hours a day, 7 days a week.

If you're still looking for a way to improve your grades and hire expert writers, we've got you covered. Place an order on our website, and we'll help you with any paperwork you want. We will exceed your expectations.

Order now Get a quote