Question

To determine the cost of ending inventory using the LIFO​ method: the average cost of the...

To determine the cost of ending inventory using the LIFO​ method:

the average cost of the inventory is used.

B.

the latest purchase costs are used.

C.

the beginning inventory and earliest purchase costs are used.

D.

the specific unit cost of the inventory is used.

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Answer #1

The Last-In, First-Out (LIFO) method assumes that the last or moreunit to arrive in inventory is sold first. The older inventory, therefore, is left over at the end of the accounting period.

therefore in LIFO cost of goods sold calculation the latest transactions will be taken into consideration the remaining earlier transaction will be determined for ending inventory

In determining the cost of ending inventory using the lifo method the beginning inventory and the earliest purchase cost are used

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