For companies that use FIFO, average cost, or any method other than LIFO or retail inventory method, inventory is valued at the lower cost or net realizable value.
FIFO stands for first in, first out, an easy-to-understand inventory valuation approach that assumes that goods bought or produced first are sold first. In principle, this indicates the oldest inventory receives shipped out to clients earlier than more recent inventory. N decides the cost of your oldest inventory and multiplies that value by way of the amount of stock sold while calculating decide the fee of your maximum current inventory and multiplying it via the quantity of stock bought.
FIFO stands for first in, first out, an easy-to-understand inventory valuation technique that assumes that goods purchased or produced first are bought first. In theory, this means the oldest stock gets shipped out to clients earlier than newer stock.
Learn more about FIFO here:-https://brainly.com/question/27952133
#SPJ4
