If a company has no beginning inventory and the unit cost of inventory items does not change during the year, the value assigned to the ending inventory will be the same under FIFO and average cost flow assumptions.

Question

Quizplus · Accepted Answer

Since there is no beginning inventory, both methods will start with the same inventory and end with the same purchases. Therefore, the ending inventory value will be the same under both FIFO and average cost methods.

If a Company Has No Beginning Inventory and the Unit