Asked by Gavin Pabst on Jul 25, 2024
Verified
The inventory costing method that reports the most current prices in ending inventory is
A) FIFO
B) specific identification
C) LIFO
D) average cost
Most Current Prices
Refers to the latest available prices of goods, services, or assets, often used in the evaluation of market trends or valuation assessments.
Ending Inventory
The total value or quantity of goods available for sale at the end of an accounting period, calculated by adding any purchases to the beginning inventory and subtracting sold goods.
- Comprehend the different methods for valuing inventory and how these methods impact financial reports.
Verified Answer
SP
Shilvi PatelJul 29, 2024
Final Answer :
A
Explanation :
FIFO (First-In, First-Out) method assumes that the first items purchased are the first ones sold, so the items remaining in inventory are the most recently purchased or produced, reflecting the most current prices.
Learning Objectives
- Comprehend the different methods for valuing inventory and how these methods impact financial reports.
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