To determine the cost of ending inventory using the LIFO method: A. the average cost of the inventory is used. B. the beginning inventory and earliest purchase costs are used. C. the specific unit cost of the inventory is used. D. the latest purchase costs are used.

To determine the cost of ending inventory using the LIFO method: A. the average cost of the inventory is used. B. the beginning inventory and earliest purchase costs are used. C. the specific unit cost of the inventory is used. D. the latest purchase costs are used.

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Description: To determine the cost of ending inventory using the LIFO method: A.the average cost of the inventory is used. B.the beginning inventory and earliest purchase costs are used. C.the specific unit cost of the inventory is used. D.the latest purchase

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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To determine the cost of ending inventory using the LIFO method:

the average cost of the inventory is used.

the beginning inventory and earliest purchase costs are used.

the specific unit cost of the inventory is used.

the latest purchase costs are used.

thanks

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