Inventory FIFO/LIFO Practice
Calculate cost of goods sold and ending inventory for the FIFO and LIFO inventory valuation methods.
Accounting puzzle
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Instructions, device progress and accessibility
Choose Easy, Normal or Hard and Practice or UTC Daily mode. Complete each accounting problem, then Check answer. Hints and Undo mark the round assisted; results and progress remain on this device. No live financial data is used.
Local progress is checked when play begins.
How to play Inventory FIFO/LIFO Practice
Calculate cost of goods sold and ending inventory for the FIFO and LIFO inventory valuation methods. Every exercise uses fictional amounts and checks your answers against accounting rules. Start with Easy and progress to Hard. Daily challenges provide repeatable puzzles for the same UTC date.
Worked accounting example
Buy 5 units at $10 and 5 at $15, then sell 6. FIFO COGS = (5 × $10) + (1 × $15) = $65. LIFO COGS = (5 × $15) + (1 × $10) = $85.
Rules and common mistakes
FIFO uses the oldest inventory costs first; LIFO uses the most recent. LIFO is not allowed under IFRS, although it may be permitted under US GAAP.
Do not confuse cash transactions with revenue recognition, and always check whether an amount belongs on the debit or credit side.
Frequently asked questions
What does FIFO mean?
First-in, first-out, where earlier inventory costs enter cost of goods sold first.
Is LIFO permitted everywhere?
No. LIFO can be used under US GAAP but is prohibited by IFRS.