Asked by Michael McGuire on Jul 26, 2024
Verified
Cost of the latest purchases are assigned to ending inventory
A)FIFO
B)LIFO
C)Weighted average
Cost Flow Assumption
An accounting method used to value inventory and determine the cost of goods sold, such as FIFO (First In, First Out) or LIFO (Last In, First Out).
LIFO
"Last In, First Out" method of inventory valuation where the most recently produced items are recorded as sold first.
FIFO
First In, First Out, an inventory valuation method where goods purchased or produced first are sold or consumed first.
- Identify and apply various inventory cost flow assumptions (FIFO, LIFO, Weighted Average).
Verified Answer
JD
Learning Objectives
- Identify and apply various inventory cost flow assumptions (FIFO, LIFO, Weighted Average).