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Description: 47-Under which method of inventory valuation, do the older goods are issued out first?a.Last In First Out (LIFO)b.Weighted average methodc.Average price methodd.First In First Out (FIFO)

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47-Under which method of inventory valuation, do the older goods are issued out first? a. Last In First Out (LIFO) b. Weighted average method c. Average price method d. First In First Out (FIFO)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13DQ: What does an increase in inventory imply? How would this increase in inventory be reported under the...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

47-Under which method of inventory valuation, do the older goods are issued out first?

Last In First Out (LIFO)

Weighted average method

Average price method

First In First Out (FIFO)

Definition Definition Accounting practice that allows a business to determine the monetary value of any unsold inventory.

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