Asked by Thanh Nhàn on Jul 12, 2024
Verified
Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period then the company using
A) LIFO will have the highest ending inventory.
B) FIFO will have the highest cost of good sold.
C) FIFO will have the highest ending inventory.
D) LIFO will have the lowest cost of goods sold.
Inventory Costing Method
A method used to assign costs to inventory items, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or weighted average cost.
LIFO
Last In, First Out, an inventory valuation method where the most recently produced or acquired items are sold first, affecting the cost of goods sold and inventory value.
FIFO
"First In, First Out," a method of inventory valuation where the earliest acquired goods are sold first.
- Acquire knowledge on the assessment and influence of diverse inventory practices (FIFO, LIFO, Average Cost) on financial accounts.
Verified Answer
Learning Objectives
- Acquire knowledge on the assessment and influence of diverse inventory practices (FIFO, LIFO, Average Cost) on financial accounts.
Related questions
Henri Company's Inventory Records Show the Following Data A Physical ...
Pasquale Has the Following Inventory Information A Physical Count of ...
In Periods of Rising Prices the Inventory Method Which Results ...
Oscar Industries Has the Following Inventory Information Assuming That a ...
In a Period of Rising Prices the Costs Allocated to ...