When the FIFO method is used, cost of merchandise sold is priced at
A) the average cost.
B) the earliest cost.
C) the most recent cost.
D) none of these.

Name: When the FIFO method is used, cost of merchandise sold is priced at A) the average cost. B) the earliest cost. C) the most recent cost. D) none of these.
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Question

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) method prices the cost of merchandise sold based on the earliest costs of inventory, meaning the first items purchased are the first ones sold.

When the FIFO Method Is Used, Cost of Merchandise Sold