Tanner Corporation's inventory cost on its statement of financial position was lower using first-in, first-out than it would have been using average cost. Assuming no beginning inventory, in what direction did the cost of purchases move during the period?
A) Up
B) Down
C) Steady
D) Cannot be determined

Question

Quizplus · Accepted Answer

The Answer of Tanner Corporation's inventory cost on its statement of financial position was lower using first-in, first-out than it would have been using average cost. Assuming no beginning inventory, in what direction did the cost of purchases move during the period?
A) Up
B) Down
C) Steady
D) Cannot be determined

Tanner Corporation's Inventory Cost on Its Statement of Financial Position