LIFO uses the ________ unit costs for cost of goods sold on the income statement and the ________ unit costs for inventory on the balance sheet.
A)newest;oldest
B)oldest;oldest
C)oldest;newest
D)newest;newest

Question

Quizplus · Accepted Answer

Last-in,first-out (LIFO)assumes that the inventory costs flow out in the opposite of the order the goods are received.Or,in other words,LIFO assumes last goods purchased (last in)are the costs of the first goods sold (first out).

LIFO Uses the ________ Unit Costs for Cost of Goods