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

Question

Quizplus · Accepted Answer

Since there is no beginning inventory and the unit cost remains constant throughout the year, both FIFO (First-In, First-Out) and average cost methods will assign the same unit cost to the cost of goods sold, as all units are of the same cost.

If a Company Has No Beginning Inventory and the Unit