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 the 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 value to the ending inventory, as all units have the same cost.

If a Company Has No Beginning Inventory and the Unit