Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher

Exercise 29

We have discussed two methods for process costing, weighted average and FIFO. Your colleague recommends last-in, first-out (LIFO) process costing to the controller as a new system. The controller is concerned about the recommendation because the cost records are maintained on a FIFO basis. Indeed, the controller has not even heard of using LIFO for process cost accounting. Can you suggest how the controller might resolve the problem