Which inventory cost flow method assigns the cost of the most recent items purchased to ending inventory?

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) method assumes that the items that are purchased first are sold first and the cost of the most recent items is assigned to ending inventory. This method results in a logical flow of costs and is a preferred method under generally accepted accounting principles (GAAP) in the United States.

Which Inventory Cost Flow Method Assigns the Cost of the Most