Which inventory cost flow method assigns the cost of the most recent items purchased to ending inventory?
A) Specific identification
B) Weighted average
C) FIFO
D) LIFO

Question

Quizplus · Accepted Answer

FIFO (First-in, First-out) assigns the cost of the earliest items purchased to cost of goods sold and the cost of the most recent items purchased to ending inventory. Therefore, it is the inventory cost flow method that assigns the cost of the most recent items purchased to ending inventory.

Which Inventory Cost Flow Method Assigns the Cost of the Most