During periods when inventory costs are rising,ending inventory will most likely be:

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Under FIFO, the oldest costs are assigned to the ending inventory, resulting in a higher valuation of inventory in periods of rising costs. This is because the more recent, higher costs are assigned to cost of goods sold, resulting in lower net income. On the other hand, under LIFO, the more recent, higher costs are assigned to ending inventory, resulting in a lower valuation of inventory and higher cost of goods sold. Therefore, in periods of rising costs, ending inventory will most likely be greater under FIFO than LIFO.

During Periods When Inventory Costs Are Rising,ending Inventory Will Most