Asked by James O'Connor on May 06, 2024
Verified
The first-in first-out (FIFO) inventory method results in an ending inventory valued at the most recent cost.
First-In First-Out (FIFO)
First-In, First-Out (FIFO) is an inventory management and valuation method where goods produced or acquired first are sold, used, or disposed of first.
Ending Inventory
The total value of all the goods a company has in stock at the end of a financial period, which have not yet been sold or used in production.
Recent Cost
The latest cost incurred for goods or services, reflecting the most up-to-date pricing information.
- Acquire knowledge of the principles and impacts of different inventory evaluation methods including LIFO, FIFO, and specific identification.
Verified Answer
Learning Objectives
- Acquire knowledge of the principles and impacts of different inventory evaluation methods including LIFO, FIFO, and specific identification.
Related questions
If a Company Uses the FIFO Cost Assumption the Cost ...
The Specific Identification Method of Costing Inventories Tracks the Actual ...
If a Company Has No Beginning Inventory and the Unit ...
In a Perpetual Inventory System the Cost of Goods Sold ...
The Specific Identification Method of Inventory Valuation Is Desirable When ...