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Commerce · Q203

Accounting

Graduate and Post Graduate · Commerce · question 203

Q203

Which one of the following inventory costing methods is supposed to issue the most recently purchased goods?

A.
FIFO
B.
LIFO
Answer
C.
AVCO or averrage cost
D.
Moving average

Answer: Option B

Solution

Answer: Option B
Solution:
LIFO inventory costing methods is supposed to issue the most recently purchased goods. LIFO, which stands for last-in-first-out, is an inventory valuation method which assumes that the last items placed in inventory are the first sold during an accounting year.