question archive If prices are rising, which inventory cost flow method will produce the lowest amount of cost of goods sold? LIFO FIFO Weighted average LIFO, FIFO, and weighted average will all produce equal amounts

If prices are rising, which inventory cost flow method will produce the lowest amount of cost of goods sold? LIFO FIFO Weighted average LIFO, FIFO, and weighted average will all produce equal amounts

Subject:FinancePrice:2.87 Bought7

If prices are rising, which inventory cost flow method will produce the lowest amount of cost of goods sold?

    1. LIFO
    2. FIFO
    3. Weighted average
    4. LIFO, FIFO, and weighted average will all produce equal amounts.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Answer:

B )

Step-by-Step explanation

Under the FIFO method, the first purchased items are sold first. If the prices are rising, the lowest cost inventories are a part of the cost of goods sold. Therefore, the FIFO method will produce the lowest amount of cost of goods sold.

 

Sitejabber (5.0)

Merchant Circle (4.8)

Trustpilot (4.6)

Study Help Me (4.9)

Related Questions