If prices of inventory are unchanged throughout the year, LIFO and FIFO inventory valuation methods will produce the same reported net income.

Question

Quizplus · Accepted Answer

If the value of inventory items and/or the value of raw materials remain the same during the accounting period, the first items purchased and the last items purchased in inventory will have the same value. Both FIFO and LIFO accounting methods will produce the same figures.

If Prices of Inventory Are Unchanged Throughout the Year, LIFO