Which inventory costing method results in the oldest costs in ending inventory?
A)Average cost
B)Last-In, First-Out
C)First-In, First-Out
D)Average-In, First-Out

Question

Quizplus · Accepted Answer

Last-In, First-Out (LIFO) results in the oldest costs in ending inventory because the most recently purchased items are assumed to be the first sold. This means that the oldest costs are left in ending inventory.

Which Inventory Costing Method Results in the Oldest Costs in Ending