Lifo Calculator

The LIFO Inventory Calculator assists users in calculating key inventory metrics such as total available units, cost of goods sold, ending inventory value, and average unit cost using the Last-In, First-Out inventory accounting method.

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How to Use the LIFO Inventory Calculator

The LIFO Inventory Calculator is designed to help you determine the cost of goods sold and the ending inventory value using the Last-In, First-Out (LIFO) accounting method. Follow the steps below to use the calculator efficiently.

Step 1: Enter Initial Inventory Details

Begin by inputting the data related to your beginning inventory:

  • Beginning Inventory Units: Enter the total units available at the beginning of the period. Ensure the value is zero or positive.
  • Beginning Unit Cost ($): Provide the cost per unit for the beginning inventory. This should be a positive number of at least $0.01.

Step 2: Record Purchase Details

Enter details of purchases made during the period:

  • First Purchase Units: Input the number of units purchased in the first batch. Enter a zero or positive number.
  • First Purchase Unit Cost ($): Enter the cost per unit for the first purchase. The amount should be at least $0.01.
  • Second Purchase Units: Enter the units acquired in the second purchase. Again, this value should be zero or higher.
  • Second Purchase Unit Cost ($): Provide the unit cost for the second purchase, ensuring it is $0.01 or greater.

Step 3: Specify Units Issued/Sold

Enter the total number of units that were issued or sold during the period. This number should be zero or positive.

Step 4: Review the Calculated Results

After you’ve filled in all the above input fields, the calculator will automatically compute the following results for you:

  • Total Available Units: This is the sum of beginning inventory and all purchases.
  • Ending Inventory Units: The remaining units after accounting for all issued or sold units.
  • Beginning Inventory Value: The total value of the beginning inventory.
  • First Purchase Value: Total cost for the first batch of purchases.
  • Second Purchase Value: Total cost for the second purchase.
  • Cost of Goods Sold (LIFO): The cost of goods sold calculated using the LIFO method.
  • Ending Inventory Value: The final value of inventory after adjusting for cost of goods sold.
  • Average Unit Cost: Calculated by dividing the ending inventory value by the number of remaining units.

Use these calculations to gain insights into your inventory management and financial performance utilizing the LIFO method.