Asked by Akeim Potter on May 12, 2024
Verified
The inventory method where items in the ending inventory will be valued at the costs shown on the most recent invoices is:
A) LIFO.
B) specific invoice.
C) FIFO.
D) weighted-average.
Specific Invoice
An itemized bill showing quantities, descriptions, prices, and terms of products and services provided by a seller to a buyer.
Ending Inventory
The total value of all unsold goods remaining at the end of an accounting period.
Recent Invoices
The latest billing statements or documents issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices.
- Educate oneself about the diverse approaches utilized in inventory valuation, specifically FIFO, LIFO, Specific Invoice, and Weighted-average.
Verified Answer
CM
Collin MeierMay 18, 2024
Final Answer :
C
Explanation :
FIFO, which stands for First-In, First-Out, is the inventory method where the items in the ending inventory are valued at the costs shown on the most recent invoices. This method assumes that the oldest items are sold first.
Learning Objectives
- Educate oneself about the diverse approaches utilized in inventory valuation, specifically FIFO, LIFO, Specific Invoice, and Weighted-average.