Asked by Karen Ortiz on Jun 29, 2024
Verified
When using the FIFO inventory costing method, the most recent costs are assigned to the cost of merchandise sold.
FIFO
Stands for "First-In, First-Out," an inventory valuation method where the first items placed in inventory are the first sold.
Merchandise Sold
Merchandise sold refers to the completed sales or the process of selling goods that are part of a company's inventory.
- Identify the distinction and utility of FIFO, LIFO, and average inventory costing approaches.
Verified Answer
LW
La'Kia Wright AdamsJul 02, 2024
Final Answer :
False
Explanation :
In the FIFO inventory costing method, the oldest costs are assigned to the cost of merchandise sold, not the most recent costs.
Learning Objectives
- Identify the distinction and utility of FIFO, LIFO, and average inventory costing approaches.
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