first-in first-out method

...Two methods for allocating the cost of inventory such as goods and materials to sales (disbursements) during the period and the remaining amount at the end of the period (closing inventory). The first-in, first-out method (FIFO) is a method for determining the cost of sales (disbursement cost) and closing inventory under the assumption that the first items received (including items carried over from the previous period) are sold in order. In contrast, the last-in, first-out method (LIFO) is a method for determining the cost of sales and closing inventory under the assumption that the most recently received items are sold in order, the opposite of the first-in, first-out method.

*Some of the terminology explanations that mention the "first-in first-out method" are listed below.

Source | Heibonsha World Encyclopedia 2nd Edition | Information

…商品や材料などの棚卸資産の原価を期中の売上(払出)分と期末残存分(期末棚卸高)に配分する二つの方法。〈先入先出法first‐in first‐out method(fifo)〉とは，最初に受け入れたもの(前期繰越分も含む)から順次売り上げられるという仮定のもとで売上原価(払出原価)と期末棚卸高を決定する方法である。これに対して〈後入先出法last‐in first‐out method(lifo)〉とは，先入先出法とは逆に，最も新しく受け入れたものから順次売り上げられるという仮定のもとに売上原価と期末棚卸高を決定する方法である。…

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出典｜株式会社平凡社世界大百科事典 第２版について | 情報