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Possible Answers: FILO.
Last seen on: LA Times Crossword 19 Oct 2017, Thursday
Random information on the term “FILO”:
FIFO and LIFO accounting are methods used in managing inventory and financial matters involving the amount of money a company has to tied up within inventory of produced goods, raw materials, parts, components, or feed stocks. They are used to manage assumptions of cost sheet related to inventory, stock repurchases (if purchased at different prices), and various other accounting purposes.
“FIFO” stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold. In other words, the cost associated with the inventory that was purchased first is the cost expenses first. With FIFO, the cost of inventory reported on the balance sheet represents the cost of the inventory most recently purchased.
Consider this example: Foo Co. had the following inventory at hand, in order of acquisition in November:
If Foo Co. sells 210 units during November, the company would expense the cost associated with the first 100 units at $50 and the remaining 110 units at $55. Under FIFO, the total cost of sales for November would be $11,050. The ending inventory would be calculated the following way: