When using FIFO, beginning inventory + purchases - cost of goods sold = ending inventory.

Name: When using FIFO, beginning inventory + purchases - cost of goods sold = ending inventory.
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FIFO (First-In, First-Out) is an inventory costing method that assumes that the first items purchased are the first items sold. Therefore, the beginning inventory plus purchases minus the cost of goods sold equals the ending inventory.

When Using FIFO, Beginning Inventory + Purchases - Cost of Goods