Match the items below by choosing the appropriate code letter :
-Cost of sales consists of the most recent inventory purchases.
A) Inventory
B) Work in process
C) FOB shipping point
D) FOB destination
E) Specific identification method
F) First-in, first-out (FIFO) method
G) Last-in, first-out (LIFO) method
H) Average cost method
I) Inventory turnover

Question

Quizplus · Accepted Answer

The Last-in, first-out (LIFO) method of inventory valuation assumes that the most recent inventory purchases are the first to be used or sold, making the cost of sales consist of these recent purchases.

Match the Items Below by Choosing the Appropriate Code Letter