Fifo Cost of Goods Sold Solution

STEP 0: Pre-Calculation Summary
Formula Used
Fifo Cost of Goods Sold = Lifo Cost of Goods Sold-(Ending Lifo Reserve-Beginning Lifo Reserve)
FCGS = LCGS-(ELR-BFR)
This formula uses 4 Variables
Variables Used
Fifo Cost of Goods Sold - Fifo Cost of Goods Sold refers to the cost of goods that a company has sold during a particular accounting period, calculated using the Fifo inventory valuation method.
Lifo Cost of Goods Sold - Lifo Cost of Goods Sold refers to the cost of goods that a company has sold during a particular accounting period, calculated using the Lifo inventory valuation method.
Ending Lifo Reserve - Ending Lifo Reserve is an accounting concept that reflects the difference between the inventory valuation under the Fifo method and the Lifo method at the end of an accounting period.
Beginning Lifo Reserve - Beginning Lifo Reserve refers to the difference between the inventory valuation under the Fifo method and the Lifo method at the start of an accounting period.
STEP 1: Convert Input(s) to Base Unit
Lifo Cost of Goods Sold: 125 --> No Conversion Required
Ending Lifo Reserve: 75 --> No Conversion Required
Beginning Lifo Reserve: 55 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
FCGS = LCGS-(ELR-BFR) --> 125-(75-55)
Evaluating ... ...
FCGS = 105
STEP 3: Convert Result to Output's Unit
105 --> No Conversion Required
FINAL ANSWER
105 <-- Fifo Cost of Goods Sold
(Calculation completed in 00.004 seconds)

Credits

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Created by Aashna
IGNOU (IGNOU), India
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Verified by Keerthika Bathula
Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad
Keerthika Bathula has verified this Calculator and 50+ more calculators!

9 Financial Modeling and Valuation Calculators

Fifo Cost of Goods Sold
​ Go Fifo Cost of Goods Sold = Lifo Cost of Goods Sold-(Ending Lifo Reserve-Beginning Lifo Reserve)
Return on Common Equity
​ Go Return on Common Equity = (Net Income-Preferred Dividends)/Average Common Equity
Fifo Retained Earnings
​ Go Fifo Retained Earnings = Lifo Retained Earnings+Lifo Reserve*(1-Tax Saving)
Fifo Net Income
​ Go Fifo Net Income = Lifo Net Income+Change in Lifo Reserve*(1-Tax Saving)
Lifo Reserve
​ Go Lifo Reserve = Fifo Inventory Value-Lifo Inventory Value
Segment Debt Ratio
​ Go Segment Debt Ratio = Segment Liabilities/Segment Assets
Segment Turnover
​ Go Segment Turnover = Segment Revenue/Segment Assets
Segment Margin
​ Go Segment Margin = Segment Profit/Segment Revenue
Segment Roa
​ Go Segment Roa = Segment Profit/Segment Assets

Fifo Cost of Goods Sold Formula

Fifo Cost of Goods Sold = Lifo Cost of Goods Sold-(Ending Lifo Reserve-Beginning Lifo Reserve)
FCGS = LCGS-(ELR-BFR)

What is Fifo Cost of Goods Sold ?

Fifo Cost of Goods Sold is a method to assume that the oldest inventory purchases or production costs are the first to be used up or sold. In periods of rising prices, FIFO typically results in lower COGS compared to LIFO, because the older inventory costs are usually lower than the newer inventory costs. Using FIFO during periods of inflation typically results in lower COGS compared to LIFO, which increases reported gross profit and taxable income. Higher taxable income can lead to higher tax liabilities, making FIFO less advantageous in certain economic conditions. FIFO often results in higher inventory values on the balance sheet during inflationary periods because newer, higher costs remain in inventory. Understanding FIFO COGS is crucial for analysts comparing companies using different inventory methods, as it directly affects profitability and financial ratios. In summary, FIFO COGS is a method of calculating the cost of goods sold that uses the oldest inventory costs.

How to Calculate Fifo Cost of Goods Sold?

Fifo Cost of Goods Sold calculator uses Fifo Cost of Goods Sold = Lifo Cost of Goods Sold-(Ending Lifo Reserve-Beginning Lifo Reserve) to calculate the Fifo Cost of Goods Sold, Fifo Cost of Goods Sold means the cost associated with the earliest inventory is used to determine Cost of goods sold. Fifo Cost of Goods Sold is denoted by FCGS symbol.

How to calculate Fifo Cost of Goods Sold using this online calculator? To use this online calculator for Fifo Cost of Goods Sold, enter Lifo Cost of Goods Sold (LCGS), Ending Lifo Reserve (ELR) & Beginning Lifo Reserve (BFR) and hit the calculate button. Here is how the Fifo Cost of Goods Sold calculation can be explained with given input values -> 105 = 125-(75-55).

FAQ

What is Fifo Cost of Goods Sold?
Fifo Cost of Goods Sold means the cost associated with the earliest inventory is used to determine Cost of goods sold and is represented as FCGS = LCGS-(ELR-BFR) or Fifo Cost of Goods Sold = Lifo Cost of Goods Sold-(Ending Lifo Reserve-Beginning Lifo Reserve). Lifo Cost of Goods Sold refers to the cost of goods that a company has sold during a particular accounting period, calculated using the Lifo inventory valuation method, Ending Lifo Reserve is an accounting concept that reflects the difference between the inventory valuation under the Fifo method and the Lifo method at the end of an accounting period & Beginning Lifo Reserve refers to the difference between the inventory valuation under the Fifo method and the Lifo method at the start of an accounting period.
How to calculate Fifo Cost of Goods Sold?
Fifo Cost of Goods Sold means the cost associated with the earliest inventory is used to determine Cost of goods sold is calculated using Fifo Cost of Goods Sold = Lifo Cost of Goods Sold-(Ending Lifo Reserve-Beginning Lifo Reserve). To calculate Fifo Cost of Goods Sold, you need Lifo Cost of Goods Sold (LCGS), Ending Lifo Reserve (ELR) & Beginning Lifo Reserve (BFR). With our tool, you need to enter the respective value for Lifo Cost of Goods Sold, Ending Lifo Reserve & Beginning Lifo Reserve and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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