Similar to the example of FIFO and LIFO inventory accounting methods depicted in the Spotlight on Small Business box titled,"What's Coming and Going at the College Bookstore?" a college store purchased sweatshirts for the upcoming fall semester.Using the following data,where a total of 100 sweatshirts were purchased by the store and placed in inventory,select the correct statement from the following choices.
A)FIFO would provide the least profit.
B)FIFO would provide the most profit.
C)LIFO or FIFO will produce the same amount of profit.
D)LIFO would provide the most profit.

Question

Similar to the example of FIFO and LIFO inventory accounting methods depicted in the Spotlight on Small Business box titled,"What's Coming and Going at the College Bookstore?" a college store purchased sweatshirts for the upcoming fall semester.Using the following data,where a total of 100 sweatshirts were purchased by the store and placed in inventory,select the correct statement from the following choices. 
A)FIFO would provide the least profit. 
B)FIFO would provide the most profit. 
C)LIFO or FIFO will produce the same amount of profit. 
D)LIFO would provide the most profit.

Quizplus · Accepted Answer

The Answer of Similar to the example of FIFO and LIFO inventory accounting methods depicted in the Spotlight on Small Business box titled,"What's Coming and Going at the College Bookstore?" a college store purchased sweatshirts for the upcoming fall semester.Using the following data,where a total of 100 sweatshirts were purchased by the store and placed in inventory,select the correct statement from the following choices. 
A)FIFO would provide the least profit. 
B)FIFO would provide the most profit. 
C)LIFO or FIFO will produce the same amount of profit. 
D)LIFO would provide the most profit.

Similar to the Example of FIFO and LIFO Inventory Accounting