For each of the following statements, determine which method of inventory valuation (FIFO or LIFO) it depicts.
1. ___________________ The item sold is assigned a cost.
2. ___________________ The ending inventory is higher under this method when costs are rising.
3. ___________________ The cost of goods sold is higher under this method when costs are rising.
4. ___________________ When prices are rising, this method results in higher net income.
5. ___________________ If this method is used for federal tax purposes, it must also be adopted for it financial accounting.
6. ___________________ This method is not accepted in some countries.
7. ___________________ When prices are rising, the average cost method will result in an ending inventory that is higher than which method?

Question

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The Answer of For each of the following statements, determine which method of inventory valuation (FIFO or LIFO) it depicts.
1. ___________________ The item sold is assigned a cost.
2. ___________________ The ending inventory is higher under this method when costs are rising.
3. ___________________ The cost of goods sold is higher under this method when costs are rising.
4. ___________________ When prices are rising, this method results in higher net income.
5. ___________________ If this method is used for federal tax purposes, it must also be adopted for it financial accounting.
6. ___________________ This method is not accepted in some countries.
7. ___________________ When prices are rising, the average cost method will result in an ending inventory that is higher than which method?

For Each of the Following Statements, Determine Which Method of Inventory