Assume a periodic inventory system is used.Which inventory costing method generally results in the cost of the first goods purchased being assigned to ending inventory?
A)FIFO
B)LIFO
C)Weighted average cost
D)Simple average cost

Question

Quizplus · Accepted Answer

Last-in,first-out (LIFO)assumes that the costs of the first goods purchased are the costs assigned to ending inventory.The most recent costs (last in)are the costs assigned to cost of goods sold (first out).

Assume a Periodic Inventory System Is Used