If a company has no beginning inventory and the unit price of inventory is increasing during a period, the cost of goods available for sale during the period will be the same under the average-cost and FIFO inventory methods.

Question

Quizplus · Accepted Answer

The cost of goods available for sale is calculated as the sum of the cost of beginning inventory and the cost of purchases during the period. If there is no beginning inventory, it will be the same under both methods as it only depends on the purchases made.

If a Company Has No Beginning Inventory and the Unit