The formula for calculating inventory is: There are different inventory accounting methods, including first in, first out (FIFO) and last in, first out (LIFO). Companies often try to match the ...

While LIFO is an acronym for last-in, first-out, FIFO stands for first-in, first-out. The LIFO method is based on the idea that the most recent products in your inventory will be sold first.

The formula for calculating inventory is ... The first in, first out (FIFO) method assumes that the first unit making its way into inventory–the oldest inventory–is sold first.