The LIFO inventory method assumes that the cost of the latest units purchased is
A)the last to be allocated to cost of goods sold.
B)the first to be allocated to ending inventory.
C)the first to be allocated to cost of goods sold.
D)not allocated to cost of goods sold or ending inventory.

Question

Quizplus · Accepted Answer

The LIFO (Last In, First Out) inventory method assumes that the most recently purchased items are the first to be used or sold, so their costs are allocated to the cost of goods sold first.

The LIFO Inventory Method Assumes That the Cost of the Latest