Question

During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is a.first-in, first-out b.average cost c.last-in, first-out d.weighted average

Answer 1

c. Last-In, First-Out. (FIFO)

Step-by-step explanation:

Under FIFO method of Inventory, we assume that the recently purchase goods are sold first. During a period of consistently rising prices, the recently purchased goods will have a greater cost.

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