is it? under temporal method: LIFO: inventory COGS:translate at historical rate FIFO: inventory COGS:translate at current rate Thanks.
Nope, you use historical for both. The only difference is you use whatever they tell you is the historical rate.
I think there are times when you can use current rate for COGS under FIFO (some example in Scheweser) Since its first in first out, you bought it right now, and sold it.
if it’s first in first out…you didn’t buy it now…you bought it early…and sold it now…you’d still use historical under temporal
your right, sorry. I was, however, refering to example and professor’s note on page 176 in book 3 - where purchases are assumed to occur evenly throughout the year, so to approximate the historical rate by using average rate.