LIFO Inventory Calculator

Your details

Units on hand before any new purchases this period. Leave at 0 if none.
The per-unit cost recorded for your beginning inventory.
USD
Number of units in your first (oldest) purchase batch.
Cost per unit for the first purchase.
USD
Number of units in your second purchase batch.
Cost per unit for the second purchase.
USD
Number of units in your third purchase batch. Set to 0 if unused.
Cost per unit for the third purchase.
USD
Number of units in your fourth (most recent) purchase batch. Set to 0 if unused.
Cost per unit for the fourth purchase.
USD
Total number of units sold during the period.
The revenue price charged per unit sold.
USD
Currency
COGS (LIFO)Moderate margin
$750.00

Cost of Goods Sold under the LIFO method

Ending inventory value$680.00
Ending inventory units65
Revenue$1,100.00
Gross profit$350.00
Gross margin31.8%
COGS (FIFO, for comparison)$560.00
LIFO reserve$190.00
Total units available120
Total cost of goods available$1,430.00
COGS (LIFO)$750.00
Ending Inventory$680.00
Gross Profit$350.00

LIFO COGS is $750.00 with a 31.8% gross margin.

  • LIFO COGS is $750.00, meaning you expensed the cost of your most recently acquired units first.
  • LIFO increased COGS by $190.00 versus FIFO. In a period of rising prices this reduces taxable income, which is the main reason U.S. businesses elect LIFO.
  • Your ending inventory of 65 units is carried on the books at $680.00 under LIFO, which reflects the oldest (cheapest) purchase costs.
  • Gross margin is 31.8% - revenue covers COGS 1.47x over.

Next stepLIFO is only permitted under U.S. GAAP, not IFRS. If you report under IFRS or plan to go international, you must use FIFO or weighted-average cost instead.

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