Welcome to WorkTool.com’s FIFO & LIFO Costing Calculator, your precise tool for accurately determining the Cost of Goods Sold (COGS) and ending inventory value using two fundamental accounting methods. For businesses managing inventory, selecting and applying the correct costing method is crucial for financial reporting, tax implications, and understanding profitability. Our intuitive calculator simplifies the often-complex calculations associated with FIFO (First-In, First-Out) and LIFO (Last-In, First-Out) methods, making it accessible for businesses of all sizes. With our FIFO & LIFO Costing Calculator, you can easily input transaction details by providing the date, quantity of items, and their corresponding unit cost. As you add each transaction, the system automatically calculates the Total Cost for that entry. The core power of this tool lies in its ability to let you select your preferred costing method – either FIFO or LIFO. Once chosen, the tool instantly calculates the “Cost of Goods Sold (COGS)” and the “Ending Inventory Value” based on the selected method. The FIFO method assumes that the first goods purchased are the first ones sold, which often aligns with the physical flow of goods. The LIFO method, conversely, assumes that the last goods purchased are the first ones sold. Understanding the impact of each method on your financial statements is vital for strategic decision-making and ensuring compliance with accounting standards. By automating these calculations, you save valuable time, reduce the risk of manual errors, and ensure consistency in your inventory costing. This tool is invaluable for inventory managers, accountants, and business owners looking to optimize their cost accounting and improve financial accuracy. For your convenience and essential record-keeping, the tool enables you to download a comprehensive PDF of your complete Costing Report. This professional document is perfect for internal reviews, financial planning, tax purposes, or for presenting to auditors. Our FIFO & LIFO Costing Calculator is designed for clarity and precision, empowering you to manage your inventory costing with confidence and ease, without needing complex enterprise resource planning (ERP) systems.