The inventory costing method that reports the earliest costs in ending inventory is a. weighted average b. specific identification c. LIFO d. FIFO

Question

Business

Nutmeg

25 May, 21:35

The inventory costing method that reports the earliest costs in ending inventory is a. weighted average b. specific identification c. LIFO d. FIFO

+4

Answers (1)

Know the Answer?

Patience Fuentes · Answer 1

c. LIFO

Explanation:

LIFO is the inventory costing method that reports the earliest costs in ending inventory. It is also a method of costing that will yield the largest net income when inventory is being valued at the cost and the purchase price remain same. It also assign the most recent costs to the cost of merchandise sold. This method is used only in United states and is been governed by the general accepted accounting principles (GAAP).