Given the same purchase and sales data,the three major costing methods will result in three different amounts for Cost of goods sold.

Question

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The three major costing methods, which are First-in, First-out (FIFO), Last-in, First-out (LIFO), and Weighted average, will result in three different amounts for Cost of goods sold (COGS) even when given the same purchase and sales data. This is because each method uses a different assumption about which inventory units were sold first and therefore values the ending inventory and COGS differently.

Given the Same Purchase and Sales Data,the Three Major Costing