有關account ~ FIFO / LIFO / Weight Method

FIFO=First in, first out;
LIFO=Last in, first out;
Weighted method = weighted average;
Cost of goods sold = stock b/f + Purchases - stock c/f;
So if material cost increases, then the last purchase lot of material will have a higher cost relative to previous lot. So, the FIFO method will have the highest value of closing stock, and the LIFO method the lowest value of closing stock. Weighted average will be in between.
Higher value of closing stock will cause COGS to increase (see above formula) and lower value of closing stock reverse case.

在物料加價的期間 不同的入帳方式是會對成本(cost of good sold)計算有不同的效果

FIFO - 愈早的貨愈早出售 那麼存貨就可以反映最近市場的價格 相對成本就是以前較平的價格 cost of good sold 就會平一點

LIFO - 愈新的貨會先出售, 那成本就會反映最近市場的價格 相反 存貨就是舊價了 cost of good sold 就是比較高

weight method - 是平均價 每次入貨將會重新計算平均價一次 cost of good sold 不會是新 / 舊價的