trogulj

When prices are rising......

FIFO COGS = LIFO COGS - (Lifo cogs- Fifo cogs) or "lifo reserve"

Reason for this is that FIFO cogs are understated bc based on earliest costs when they were initially bought so it makes intuitive sense that the difference in cogs between the two methods will be the amount you need to subtract from Lifo to come to the Fifo equivalent.

or

LIFO COGS = FIFO COGS + (Lifo cogs - Fifo cogs)