Assume a periodic inventory system is used.The LIFO inventory costing method assumes that the cost of the units most recently purchased is the:
A)last to be assigned to cost of goods sold.
B)first to be assigned to ending inventory.
C)first to be assigned to cost of goods sold.
D)last to be assigned to units available for sale.

Question

Quizplus · Accepted Answer

Last-in,first-out (LIFO)assumes that the inventory costs flow out in the opposite of the order the goods are received.Or,in other words,LIFO assumes that the newest goods (last in)are the first ones sold (first out).

Assume a Periodic Inventory System Is Used