Which method of inventory assumes the last units purchased will remain in ending inventory on the balance sheet?
A)FIFO.
B)LIFO.
C)Average cost.
D)LIFO and FIFO.

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) assumes that the first units purchased will be the first ones sold, leaving the last units purchased in ending inventory. Therefore, it is the opposite of the method described in the question, which assumes that the last units purchased will remain in ending inventory.

Which Method of Inventory Assumes the Last Units Purchased Will