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22. Which inventory costing method assigns the cost of the most recent items purchased to cost...

22. Which inventory costing method assigns the cost of the most recent items purchased to cost of goods sold? a. LIFO b. Weighted average cost c. FIFO d. Specific identification

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Answer #1

Inventory costing that assigns the cost of the most recent items purchased to cost of goods sold is called LIFO (last in first out)

Answer is a.

In case of FIFO Inventory costing cost of the most earlier items purchased are assigned to cost of goods sold.

In case of Weighted average Inventory costing cost of the goods available for sale and averaged and assigned to cost of goods sold.

In case of specific identification Inventory costing cost to be applied to cost of goods sold is specified.

So, correct answer here is a.

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