Two companies report the same cost of goods available for sale but each employs a different inventory cost formula.If the price of goods has increased during the period, then the company using
A)FIFO will report lower ending inventory.
B)average cost will report lower ending inventory.
C)FIFO will report higher cost of goods sold.
D)average cost will report lower cost of goods sold.

Question

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The Answer of Two companies report the same cost of goods available for sale but each employs a different inventory cost formula.If the price of goods has increased during the period, then the company using
A)FIFO will report lower ending inventory.
B)average cost will report lower ending inventory.
C)FIFO will report higher cost of goods sold.
D)average cost will report lower cost of goods sold.

Two Companies Report the Same Cost of Goods Available for Sale