When a sale occurs and a company uses the LIFO method of inventory costing, the newest costs of inventory items are sent to Cost of Goods Sold.

Name: When a sale occurs and a company uses the LIFO method of inventory costing, the newest costs of inventory items are sent to Cost of Goods Sold.
Brand: Quizplus
Rating: 4.9 (60 reviews)

Question

Quizplus · Accepted Answer

In the LIFO (Last In, First Out) method, the most recently acquired inventory costs are used to calculate the Cost of Goods Sold when a sale occurs.

When a Sale Occurs and a Company Uses the LIFO