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 LIFO and average cost flow assumptions.

Question

Quizplus · Accepted Answer

If there is no beginning inventory and the unit cost of inventory items does not change during the year, then the cost of goods sold and the ending inventory will be the same under both LIFO and average cost methods. Therefore, the value assigned to the ending inventory will also be the same.

If a Company Has No Beginning Inventory and the Unit