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

Since there is no beginning inventory, both LIFO and average cost flow assumptions will allocate the same cost to the units sold throughout the year, resulting in the same ending inventory value.

If a Company Has No Beginning Inventory and the Unit